George Osborne 'To Fight For Bankers' Bonuses' In Europe

THE DAILY TELEGRAPH: George Osborne is preparing to defend the right of British banks to pay large bonuses against EU plans to cap the pay-outs, it emerged last night.

The Chancellor is expected to argue against the crackdown at a meeting of European finance ministers on Tuesday, in spite of a fresh public outcry over the behaviour of bankers in the wake of the rate-rigging scandal.

Mr Osborne will argue that the proposals, to set a maximum 1:1 ratio of bonus to pay, are not the right way to curb City remuneration.

Officials insist that he had taken the same position before details of the Libor rate-fixing scandal emerged, and it has not changed, the Financial Times reported.

But the timing of the meeting is likely to make it politically risky for him to make such a case, with the Chancellor potentially facing the accusation of being in cahoots with bankers despite allegations about their reckless behaviour.

It comes amid outrage that Barclays chief executive Bob Diamond may still be in line for a multi-million pound pay-out following his resignation over rate rigging. » | John-Paul Ford Rojas | Saturday, July 07, 2012

My comment:

This is clearly a case of out-of-touch Osborne defending the indefensible. This man is not in power to serve the people, but to serve his cronies. – © Mark

Why Don’t They Jail the SOBs and Wipe the Smile Off Their Faces?
Lloyd C. Blankfein was paid $67.9 million in 2007. His bank’s profits in 2009 were higher than that year. Photograph: Times Online
TIMES ONLINE: Goldman Sachs, the world’s richest investment bank, could be about to pay its chief executive a bumper bonus of up to $100 million in defiance of moves by President Obama to take action against such payouts.

Bankers in Davos for the World Economic Forum (WEF) told The Times yesterday they understood that Lloyd Blankfein and other top Goldman bankers outside Britain were set to receive some of the bank’s biggest-ever payouts. “This is Lloyd thumbing his nose at Obama,” said a banker at one of Goldman’s rivals.

Goldman Sachs is becoming the focus of an increasingly acrimonious political and financial showdown over the payment of multimillion-pound bonuses.Last week the US President described bonuses paid out by some banks as “the height of irresponsibility” and “shameful”.

“The American people understand that we have a big hole to dig ourselves out of, but they do not like the idea that people are digging a bigger hole, even as they are being asked to fill it up,” he said last week. Lloyd Blankfein of Goldman Sachs 'Expecting $100 Million Bonus' >>> Helen Power in Davos | Monday, February 01, 2010

G20 Summit: Leaders Target Bankers
THE TELEGRAPH: World leaders will agree unprecedented global restrictions on pay and bonuses for bankers at the G20 summit in London.

G20 rioters storm RBS – Telegraph TV exclusive
In future, bankers will be prevented from receiving multi-million pound cash bonuses for speculating on the stock market.

Their remuneration will instead be based on the risks they take over the long term. Bankers deemed to be making risky investment decisions will only be paid in shares that can be cashed in after several years.

The multi-million-pound bonuses paid to bankers have been blamed for encouraging them to take the "reckless" decisions that triggered the global financial crisis.

The Daily Telegraph has learnt that the remuneration deal was thrashed out over the past few days following intensive diplomatic efforts by Nicolas Sarkozy, the French President, and Angela Merkel, the German Chancellor. The measure did not appear in a draft communiqué that was leaked at the weekend.

The European leaders were understood to have pushed for an exact monetary limit on banking pay but were prepared to sign up to the new, strongly-worded agreement.

Regulators in each of the G20 countries will impose the new restrictions, which cover both private banks and those owned both wholly and partially by the state.

The agreement will be the most eye-catching part of the communiqué, which is expected to be released by G20 leaders at the summit in London's Docklands on Thursday.

On Wednesday, violent clashes took place in the capital between police and anti-capitalism protesters ahead of the talks. In the City of London, a branch of Royal Bank of Scotland was attacked and looted as violence flared during a 6,000-strong protest, which resulted in 32 arrests.

A man died after he collapsed at the scene of protests near the Bank of England last night.

A protester called the police after they saw the man collapse and stop breathing in St Michael’s Alley, near Birchin Lane just off Cornhill shortly before 7.30pm.

Two police medics broke through the cordon and carried the man to a clear area in front of the Royal Exchange where they gave him CPR.
The ambulance arrived six minutes later and took him to hospital just before 8pm, where he was pronounced dead.

A Scotland Yard spokesman said: “The officers took the decision to move him as during this time a number of missiles - believed to be bottles - were being thrown at them.”

It is believed that the man died of a heart attack. >>> By Andrew Porter, Robert Winnett and Christopher Hope | Thursday, April 2, 2009