1. Home
  2. UK Finance Discussions
  3. That's OK then

That's OK then

Readers will be relieved to know that, thanks to the generosity with which they have donated their taxes to bailing out the banks, the staff of Lloyds TSB will be receiving their Christmas bonuses after all.

This heartwarming news was announced by Lloyds TSB chief executive Eric Daniels in a recorded message to employees, in which Daniels stressed that the bank faced "very, very few restrictions" in its behaviour despite the injection of up to £5.5bn of taxpayers' funds. "If you think about it, the first restriction was not to pay bonuses. Well Lloyds TSB is in fact going to pay bonuses. I think our staff have done a terrific job this year. There is no reason why we shouldn't," said Daniels.

formatting link
formatting link
In these days of declining moral standards, it is so nice to know that those who are tasked with promoting financial rectitude are properly rewarded, whilst those who have been so feckless as to take out mortgages that they cannot afford to pay back are rightly pursued through the courts for the last penny.

Reply to
Robin T Cox
Loading thread data ...

In message , Robin T Cox writes

It all depends which staff are going to get bonuses. I probably won't feel too bad if only the ordinary workers get it. After all, they may have been working extra hard during the past year. It probably isn't their fault that the banks are where they are today. They were not steering the ship. That 'honour' lies with the fat cats at the top and the higher management who determined trading policies. These are the one who definitely should NOT get any bonuses.

In order to turn things around, banks are going to need the services of dedicated and motivated employees. A small 'nominal' bonus may help as a sweetener to ensure that they take to new task of getting things fixed with all the enthusiasm which they have had previously.

Reply to
Ian Jackson

formatting link
>>

Indeed, and from the reference in the original post:

"The employees being addressed by Daniels are not necessarily among the highest paid at the bank and could be working in branches, earning around £15,000 a year and relying on bonuses to help bolster their take home pay"

Reply to
Gareth

formatting link
>>>

Daniels, of course, was extremely concerned that the lowest paid in his organisation should not be disadvantaged. And presumably the preservation of pay differentials was furthest from his mind.

How admirable.

Reply to
Robin T Cox

Some of the taxpayers who are being asked to contribute to the bailouts saving the bank staff jobs are on the minimum wage. It hardly seems reasonable to ask them to bail out folks who actually earn more than they do. Better would be to reduce all bank staff to the wage of the lowest-paid taxpayer who is assisting the bailout, the wages to return to normal after every last penny of the bailout has been returned.

The staff would of course have the option to take it or leave.

FoFP

Reply to
M Holmes

"M Holmes" wrote

Which taxpayers are *contributing* anything?

AIUI, the state is borrowing a wodge of loot, to lend to the banks at impressive rates, so the state should then get a good profit on the deal which will (in turn) reduce future taxes...

Isn't that the case?

Reply to
Tim

So, in other words, this bail-out will actually cost the taxpayers nothing! What a genius Gordon Brown is.

Reply to
Robin T Cox

"Robin T Cox" wrote

Yep, if all goes well!

Reply to
Tim

According to a WB study of 42 such bailouts, 13% was the average recovery rate of cash put out. I think you'll find that the taxpayers, rather than "the state" will be paying for the rest of it.

Doncha read the papers?

FoFP

Reply to
M Holmes

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.