RBS Board to play "Call my Bluff"?....

[Osem]

The directors of Royal Bank of Scotland have been given legal advice that they would have to resign if the chancellor of the exchequer were to block them from paying the bonuses they regard as essential to maintain the competitiveness of the group.

http://www.bbc.co.uk/blogs/thereporters/robertpeston/

Another interesting potential dilemma for Gordon and his Darling.....

[Mr Angry]

Tough crap.

http://uk.news.yahoo.com/22/20091202...m-ca02f96.html

Call thier bluff and stop bailing them out.

Oh, and can i have my £20K back please?

[Mr Angry]

Originally Posted by Tuftus

Call thier bluff and stop bailing them out.

Oh, and can i have my £20K back please?

Seconded.

[highlandlassie]

What about the the employees at the bottom of the ladder, they don't get a bonus anymore, and they are the ones who have to take all the abuse from the customers.

[Derek]

Originally Posted by BBC News

However, Royal Bank's directors believe that if they don't pay the "going rate" for bonuses, its top bankers will desert to rivals - thereby destroying a vital part of the business

Hmmmm, sounds like bovine droppings to me.

Sod em. If they resign please make sure they don't get huge payouts when they go.

Ok RBS fair enough see you i am sure there are plenty of just as bright people happy to take your job without wanting a huge bonus. Really does make me sick seeing so much whinging coming from the banking fraternity right now given how their complete inepititude has contributed to so many this christmas being out of work and in some cases out of their home.

[Saaf_laandon_mo]

If i had one, i'd bet my big bonus that the government backs down before the banks do.

[Osem]

Yes, it'll be interesting to see how this plays out..

The government's done a lot of tough talking over the years and rarely backed it up. Now they, correction, WE own 70% of RBS we have a lot to lose if RBS stops making profits, namely getting all the billions of our money back at some time. Aside from RBS's much needed contribution to HMG's fast diminishing tax recepits, all Darling and Brown have to lose is face and no doubt their team of spinners is busily trying to come up with some means by which to limit their embarrassment if it all goes pear shaped.

I'm no expert on the subject but, as I understand it, there are legal issues of corporate governance at the root of the Board's stance and, if that's the case and the Board is acting in line with those, it rather begs the question why didn't Darling know he'd be putting them in an impossible position by demanding the right to veto the bonus payments. Of course he may well have known in which case it's just possible he's playing a game which is intended to make the banks look bad in the eyes of the public and HMG look like the good guys doing their utmost to bring those greedy bankers to heel....

Sadly for us taxpayers, whilst we'd all like to see those at fault for the banking crisis (inxcluding HMG and the regulators who failed so miserably) get their comeuppance, that chance is gone. As Fred the Shred will tell you, the money's been made and paid and anyone who tries to claim otherwise is either delusional or a cynical politician trying to save his own skin. As I see it, all that will be achieved by turning RBS into a publicly owned non-performer is that we will have less chance of ever getting our money back. In the meantime those banks not encumbered by public ownership and the whims of politicians will be rubbing their hands with glee as they rake in the profits and sign up the star performers.

[Flyboy]

Originally Posted by highlandlassie

What about the the employees at the bottom of the ladder, they don't get a bonus anymore, and they are the ones who have to take all the abuse from the customers.

This has nothing to do with bonuses paid at retail levels. This is multi-million pound bonuses paid to management for screwing the country. I say tell them to beggar off and go find a proper job. Ungrateful gits.

We, if RBS folds because of this roll it into the Bank of England and have a proper state bank.... Ofc this will never happen, as Britains politicians love nothing more than wrecking the peoples industries before selling them off, and then having to use public money to then subsidise privitised industry.... Jerkoff politicians the lot of them....

[Osem]

Like it or not, I think the only way we're going to get our money back from the likes of RBS is if they make sufficient profits to enable them to repay debt and become a sufficiently attractive business proposition that other institutions want to invest in them. If they're not making money and lots of it, that'll never happen.

[Flyboy]

This can be achieved without the need to pay incompetent bosses vast sums of money.

[Osem]

Originally Posted by Flyboy

This can be achieved without the need to pay incompetent bosses vast sums of money.

Let's get something straight - we all know some serious mistakes were made and sadly those involved have already been paid very handsomely for their failures. HMG is never going to recover that money so let's get over the idea that these people are going to be made to pay for their sins.

With respect to the incompetent bosses you refer to, how are we going to identify them and how long do you think it'll take to penalise them (if ever) given all the protracted and costly legal wranglings which will ensue? If you're claiming they're all incompetent then who's responsible for making the money now and what do we do about them? Do we reward them accordingly or penalise them for the actions/failures of others? If we do the latter, what's to stop them taking their money making abilities to those banks (including all the foreign owned ones competing to fill the vacuum) they currently compete with and who will pay them pretty much what they ask for? If they do that, RBS will suffer and we don't get our Billions back. How does that help the taxpayer?

It'd be really nice to rewind the tape but we can't.

[Mr Angry]

Lloyds are at it too.

http://www.gulf-times.com/site/topic...8&parent_id=20