According to the Guardian, the Royal Bank of Scotland is setting aside 1.9bn sterling of taxpayers money to pay 'staff costs' including discretionary bonuses out of the £20bn given to it to help it survive. As we all know, Brian Cowen has talked reeeellly tough about this sort of thing too - suggesting that senior bankers should not be paid more than £500K, the poor dears.

http://www.guardian.co.uk/business/2008/nov/01/royal-bank-scotland-vincent-cable

Does anyone know how the Irish banks are behaving in this regard? It has to be acknowledged that the British media are doing a much better job of staying on top of the crisis there in this regard than our timid press are here. The Guardian alone has several fairly tough pieces on repossessions and Jon Snow/Channel 4 news is hot on that one too.

Aragon wrote:

According to the Guardian, the Royal Bank of Scotland is setting aside 1.9bn sterling of taxpayers money to pay 'staff costs' including discretionary bonuses out of the £20bn given to it to help it survive. As we all know, Brian Cowen has talked reeeellly tough about this sort of thing too - suggesting that senior bankers should not be paid more than £500K, the poor dears.

http://www.guardian.co.uk/business/2008/nov/01/royal-bank-scotland-vincent-cable

Does anyone know how the Irish banks are behaving in this regard? It has to be acknowledged that the British media are doing a much better job of staying on top of the crisis there in this regard than our timid press are here. The Guardian alone has several fairly tough pieces on repossessions and Jon Snow/Channel 4 news is hot on that one too.

What press? All we have is a short blurb in front of a long paid ads section.

I thought, from initial media reports, that they weren't allowed to do this. Perhaps it will be stopped before it actually goes ahead.

johnfás wrote:

I thought, from initial media reports, that they weren't allowed to do this. Perhaps it will be stopped before it actually goes ahead.

I posted a link to the terms and conditions of the Guarantee in the Almost Nationalised thread, kindly provided by Joan Burton T.D.
I haven't had a chance to read them yet.

Here's that link again:

http://www.finance.gov.ie/viewdoc.asp?DocID=5507

Here's the relevant section below, I think - it certainly doesn't rule out bonuses and in fact they will be linked to reducing the debt burden of the bank for the amount lent. Bonuses for ****ing up and bonuses for cleaning the mess up afterwards! Way-hay! I wish AIB would pay me a bonus for repaying my car loan! In fact the SI is a bit of a con job it seems - it everywhere gives the minister the right to intervene but it almost nowhere says that he actually will. In other words the banks will be left to their own devices for the main part. It says eg that s/he will have the right to appoint two non-executive directors to the boards of the relevant institutions but it's not guaranteed that will actually happen :

Quote :

The Minister will establish an independent committee called the Covered
Institution Remuneration Oversight Committee (“CIROC”) comprising three
members appointed by him or her to oversee all remuneration plans of senior
executives of the covered institutions.

47. Each covered institution shall prepare a plan to structure the remuneration
packages of directors and executives so as to take account of the objectives
of the Act of 2008. For the purposes of this paragraph, remuneration shall
include total salary, bonuses, pension payments and any other benefits received
from a covered institution and its group entities, or otherwise received by a
director or executive arising from the performance of his or her functions as a
director or executive. Such plans shall cover, inter alia, executive bonuses including
share options, if any. Bonuses shall be measurably linked to reductions in
guarantee charges, reduction in excessive risk taking and encouraging the longterm
sustainability of the covered institution.

David McWilliams says there is an international crisis of confidence in Irish banking:

http://www.sbpost.ie/post/pages/p/story.aspx-qqqt=DAVID+McWilliams-qqqs=commentandanalysis-qqqid=37217-qqqx=1.asp

Aragon wrote:

David McWilliams says there is an international crisis of confidence in Irish banking:

http://www.sbpost.ie/post/pages/p/story.aspx-qqqt=DAVID+McWilliams-qqqs=commentandanalysis-qqqid=37217-qqqx=1.asp

I have a horrible fear that Government might be taking advice from this man. He is the lone voice not saying that the Irish Banks (2) need to be recapitalised and the rest of the Irish banks "consolidated". He is wittering on about "minimum public investment" in capitalisation whilst Rome is burning and may even have lead Government to believe that they would get away with the Guarantee but without recapitalisation. This is not the way to restore confidence. I think McWilliams is a lightweight.

Aragon wrote:

Here's that link again:

http://www.finance.gov.ie/viewdoc.asp?DocID=5507

Here's the relevant section below, I think - it certainly doesn't rule out bonuses and in fact they will be linked to reducing the debt burden of the bank for the amount lent. Bonuses for ****ing up and bonuses for cleaning the mess up afterwards! Way-hay! I wish AIB would pay me a bonus for repaying my car loan! In fact the SI is a bit of a con job it seems - it everywhere gives the minister the right to intervene but it almost nowhere says that he actually will. In other words the banks will be left to their own devices for the main part. It says eg that s/he will have the right to appoint two non-executive directors to the boards of the relevant institutions but it's not guaranteed that will actually happen :

Quote :

The Minister will establish an independent committee called the Covered
Institution Remuneration Oversight Committee (“CIROC”) comprising three
members appointed by him or her to oversee all remuneration plans of senior
executives of the covered institutions.

47. Each covered institution shall prepare a plan to structure the remuneration
packages of directors and executives so as to take account of the objectives
of the Act of 2008. For the purposes of this paragraph, remuneration shall
include total salary, bonuses, pension payments and any other benefits received
from a covered institution and its group entities, or otherwise received by a
director or executive arising from the performance of his or her functions as a
director or executive. Such plans shall cover, inter alia, executive bonuses including
share options, if any. Bonuses shall be measurably linked to reductions in
guarantee charges, reduction in excessive risk taking and encouraging the longterm
sustainability of the covered institution.

Ay caramba