Tories fighting to protect bankers bonuses

Should gun down the lot. * bankers are a disgrace.

 

You can't blame the actual bankers themselves, they'll simply take as much as they can get (like most people would), it's really up to the Government to, well, govern the industry properly.

 

In the £2nd scenario, would you say a banker deserves is if they've made their company £50m in revenue? Or would a fund manager not deserve a substantial bonus if he'd grown a retirement fund worth £billions over the past decade?

There's a lot of hate for bankers on here, some if it justified but most just seems to be aimed at anyone who works in financial services in general. Ironically we're all here in support of a sporting system that would have no problems matching a well performing bankers annual salary in a week.

 

* *.

Take a bit of time and read UncleHo's posts earlier in this thread. Very insightful and ones which i tend to agree with.

 

At least the taxpayer is on course to get all of the original bail out back. I would actually expect a profit to be made, Once dividends start to be paid. This will also likely drive the price up as well, not to mention the Government will receive dividend payments also. (OG1 might be interested in that ).
In fact I would hope the government would look at the possibility of keeping the holdings, as they could be the start of a UK fund similar to the Norwegian sovereign fund. (currently worth many 100's of billions). Although there are a few likely problems in this hope .


https://uk.finance.yahoo.com/news/uk-raises-769-million-sale-075037814.html


UK raises $769 million through sale of Lloyds shares

Reuters - UK Focus – 1 hour 18 minutes ago

* Sale cut government stake in Lloyds to 23.9 pct
* Shares (Frankfurt: DI6.F - news) sold above 73.6 pence average buy-in price
* Sale a step towards full return to private ownership (Adds details on method of sale, future sale prospects)
By Matt Scuffham
LONDON, Feb 23 (Reuters) - Britain's finance ministry has raised 500 million pounds ($769 million) through the sale of a further one percent stake in Lloyds Banking Group, cutting its holding to below 24 percent.
The sale moves Lloyds another step towards a full return to private ownership after Britain pumped 20 billion pounds into the bank during the financial crisis of 2007 to 2009, leaving it with a 41 percent shareholding.
"This is further progress in returning Lloyds Banking Group to private ownership, reducing our national debt and getting taxpayers' money back," Britain's finance minister George Osborne said in a statement on Monday.
UK Financial Investments (UKFI), which manages the government's stakes in bailed out banks, hired Morgan Stanley (Xetra: 885836 - news) in December to sell Lloyds shares on the stock market through a "pre-arranged trading plan".
The sales since made by Morgan Stanley, all at a price above the 73.6 pence average price that the government paid, have taken the government's stake down to 23.9 percent from 24.9 percent when the trading plan was launched. They also take the total amount raised by the government so far from selling down its stake in Lloyds to just under 8 billion pounds.
Lloyds shares traded 0.8 percent higher at 78.60p at 0815 GMT on Monday.
Lloyds is expected to announce its first dividend since its rescue on Friday, increasing the bank's appeal to investors and making it easier for the government to offload its remaining shares. Prior to its bailout, Lloyds had a record of being one of the highest dividend paying stocks in Britain, handing over half its profit to shareholders in 2005 and 2006.
UKFI had previously raised 7.4 billion pounds through two separate sales to financial institutions such as pension funds and insurers. Those sales were made using an 'accelerated bookbuild' with the shares sold overnight while the stock market was closed.
In contrast, Morgan Stanley is seller smaller amounts of shares on the open market and has been mandated to continue to do so until the end of June.
After that, industry sources said UKFI could look to make another larger sale to institutions or offer shares to private retail investors.
A sale of shares in Britain's other bailed-out bank Royal Bank of Scotland is unlikely in the next two years, the sources said.
Shares in RBS (LSE: RBS.L - news) are trading well below the price the government bought them at, leaving taxpayers sitting on a loss of nearly 10 billion pounds. ($1 = 0.6503 pounds) (Editing by Keith Weir)

 

The Government are getting the taxpayers money back and are on track (so far) to make a profit from the bail outs. Maybe bonuses are not such a bad thing after all


https://uk.news.yahoo.com/britain-sells-another-1-0-083141899.html#3R3URDL


Britain sells another 1.0% of Lloyds bank

AFP – 1 hour 33 minutes ago


Britain has sold another 1.0 percent in state-rescued Lloyds Banking Group for £500 million ($754 million, 694 million euros), matching last month's
sale, the government said Monday.

The Treasury announced in a statement that the sale has trimmed its stake from 24 percent to just under 23 percent, under plans to return LBG to private hands.

Britain still owns a large chunk of Lloyds after bailing it out with £20 billion of taxpayers' cash at the height of the 2008 global financial crisis.
The government initially took a 39-percent share of Lloyds and has so far raised about £8.5 billion selling bits of its holding.

Chancellor of the Exchequer George Osborne had revealed a six-month plan in December to reduce the stake.
"I am delighted that we've raised a further £500 million for the taxpayer through the trading plan," he said.

"These sales are part of our plan to return Lloyds to the private sector and get taxpayers' money back. The proceeds will be used to reduce the national debt."

The shares were sold above the average price that the previous Labour government had paid for them, which was 73.6 pence.

Late last month, Lloyds had posted its first annual net profit since the 2008 bailout, edging it closer to a return to full private ownership.

LBG recorded a profit after tax of £1.125 billion last year compared with a net loss of 838 million in 2013.

 

Hold on, you mean to say that we're actually turning a profit from bailing out the banks? How is this possible? I thought we only bailed them out so that the bankers themselves could benefit at the expense of the regular joe?

 

So the govt make a few million here and there, but where does this money go ?? straight back into paying off the debt created by the bailout , swings and fucken roundabouts.

£850bn: official cost of the bank bailout

Also, has the banking system changed its lending practices ???? not really when you look at the housing bubble being created in the south East.

Next bail out, or bail in, is coming soon I,m afraid.

http://www.independent.co.uk/news/u...fficial-cost-of-the-bank-bailout-1833830.html

 

"£850bn: official cost of the bank bailout
(and still RBS is demanding another £1.5bn in bonuses)
By Andrew Grice , Political Editor
Friday 04 December 2009"

Oh look the forum idiot has turned up with an article originally cobbled together from 2009 :smiley-laughing002:
Probably didn't even notice as there is a history of that.
Angus, the only person on here who would have made Butch seem astute when it comes to finances (sorry Butch if you are lurking).

 

I,m well aware that the article was from 2009 :smiley-laughing002:, just after the bailout, but why would the date of the article matter ???

Away you go back to discussing how to rearrange the seats on the Titanic :bbpd:

 

It matters because we're now seeing the actual result of said bailout. An article from six years ago isn't really relevant to what Tim was posting.

 

You dont think its relevant that the bailout has cost ordinary Uk citizens nearly£1 trillion ???

The article he posted was only highlighting the fact that we have recieved some small change in return, of course its relevant.

 

We have received a certain amount in return thus far.

 

although If you/anyone needs to point that out, it tells me that you are wasting your time explaining it , as they don't understand. As I said, village idiot.

 

If they raised £500m by selling 1% of their holding, why not sell the remaining and bring in another approx £12 Billion.

 

Any money the govt gains from this will just disappear, as the country is now swamped in debt, most of which was accrued by the bailout in the first place.

I would argue that govts should try to wrestle more control over the banks, and continue to collect shares of the profits, as well as having some influence regarding malpractice.

 

By selling it off slowly they will hope to get a good price and make a profit currently they could make about half a billion profit or "some small change" if you like. :smiley-laughing002:

Also if they sold the whole lot at once this would probably drive the price down. Personally, if I was the treasury, I would look to keep about 10/15 % long term. As the banks are going to be paying dividends again and they traditionally pay well, so that would also provide a handy future income as well as still owning an asset that will hopefully increase in value which will then increase dividend payments and would do so perpetually.

One final point to consider as why they bailed the banks out (ignoring the chaos that would have ensued and the breakdown in civil order) the government, as we see, will make a profit but they also kept tens of thousands of normal bankers in jobs and that in return has seen the treasury collect hundreds of millions in fact billions in tax's and National Insurance etc. As opposed to these 10's of thousands claiming benefits as well.

 

Aye never mind the chaos that ensued that cost hundreds of thousands if not millions their jobs, or the thousands of hard working businesses who were forced to close because of the economic climate created by the bailout.

The only thing the govts should have guaranteed was ordinary peoples savings, the banks should have been left to fail.

 

Your ability to demonstrate your stupidity never fails.

 

So you are saying that western economy florished following the events in 2007-08?