I’ve posted my views on the bank bosses and how I think they should be treated before on this blog. Which in summary is fire em arrest em charge em and reclaim their assets when found guilty lock em up and throw away the key. This week we hear RBS is going to give big bonuses to many of its top staff. At this news I go into my Victor Meldrew “I don’t believe” it mode. President Obama takes a more refreshing line this week capping the salaries of bosses who have received state aid at $500,000pa. By American standards a very modest sum. It sends a message though to all CEO’s about their behaviour and in the States some of the offenders are already in the legal process. It may also have a positive effect on future requests for state help i.e. they may be slow in asking if they think they are going to have to accept a massive pay cut.
Over here what do we get from Lord Mandelson? It’s not very good PR and they are looking at it and I think I’ll scream if I hear Gordon Brown utter those now famous words “the government is doing all it can”. When we see what is still happening. We hear that seven of the non exec directors of RBS are leaving, with a golden handshake I suspect. The government have not done half enough to bring those responsible within the banks and financial institutions to book over this crisis. What worries me is that they are still out there working in the sector and I think still largely unchecked.
Stop Press: - I now hear Lord Mandleson is thinking of capping their salaries. More to come on this story I think. He’s been reading the blog.
So Peter here is the bottom line! No bonuses no way, until such time that the bail out is paid in full and the banks have started to pay dividends to share holders.