How Can This Be Allowed?

  Bapou 22:06 30 Oct 08
Locked

A financial company receives a £6bn government bail out, yet is planning to hand out £8bn in Christmas bonuses as per normal. click here

Although understanding to a certain degree how and why we face a recession has come about, I fail to understand how this can be allowed.

Some of these financial 'crisis' stories have me very puzzled. There was one last week which stated Northern Rock is well on course to pay off it's debt to we poor taxpayers by 2010 so it's bonuses all round!

Do they have a different interpretion of 'financial crisis' to simple souls like me?

  peter99co 22:17 30 Oct 08

Can a Leopard change it's spots?

  GANDALF <|:-)> 22:28 30 Oct 08

and you are suprised? The banks and financial institutions have really taken the St Michael from the UK taxpayer and yet the UK population just accept it saving their energy to repatedly complain about the juvenile antics of 2 radio presenters. Kind of shows the state and mores of the nation IMHO.

G

  spuds 22:32 30 Oct 08

Its a bit like many services nowadays that are failing, give someone a bonus for their performance. Failing that, a golden handshake and possible favour pension rights will do nicely.

  Forum Editor 22:45 30 Oct 08

there's even the remotest connection between the current financial situation and the radio 2 fiasco, and only a fool would claim that the UK population is just accepting the former.

Complaining about the latter would seem to me to indicate that the mores of the nation are in excellent fettle.

  GANDALF <|:-)> 23:05 30 Oct 08

'Complaining about the latter would seem to me to indicate that the mores of the nation are in excellent fettle'...35000 compalints out of 59 million?
There are striking similarities, the main one being a sense of outrage...the public will get enraged beyond common sense over 2 radio presenters (one who many seem to think is overpaid with BBC licence money - similar to tax payers maoney, yet when their own money is given to financial institutions, who are in a greater part, the architects of their own misery and the Government has to borrow shed loads (Government borrowing is only ever deferred taxation)to bail out these institutions, the public does not seem to be terribly fussed.
HM Govt. must be in raptures over the recent attention-turning headlines.


G

  Forum Editor 23:25 30 Oct 08

certainly seem to be terribly fussed about the current financial situation. One of my daughters is worried that she may be made redundant as a result of it, and she's certainly fussed.

The people who want to get a foot on the first rung of the housing ladder but are unable to get a mortgage are also terribly fussed.

I'm terribly fussed to learn that I may lose a very good client because the company is cutting back on costs in an attempt to avoid laying off staff.

I've said it before, but some people can't seem to grasp the point that it's us, the people of this country, who are ultimately responsible for the mess things are in. It's no good bleating endlessly about the big, bad financiers who walked us down the road to ruin, as if they did so against our will - we happily aided and abetted them in every way, and now we're paying the price.

  lofty29 08:44 31 Oct 08

FE
I wil agree with you on most points, however some of us do behave responsibly, no NOT live above our means, but most of us will have to pay the price.
GANDALF
Many of us incenced over both issues, and others besides.

  interzone55 08:55 31 Oct 08

I don't think we should worry too much about this, Goldman Sachs are a US bank, they've taken money of US tax payers, so it's hardly something that will keep me awake at night...

  Condom 10:27 31 Oct 08

Personally I don't have any problems with any company which gives bonuses to staff from profits and hopefully the same bonus goes to all staff. These are companies and it is up to shareholders to decide the levels not Joe public.

Now where companies are making a loss then I can see no logical reason for paying bonuses but again that is for shareholders to decide.

This seems to be a USA thing and again has little to do with me or us.

What I would be very angry about is companies presently bailed out with the help of my money (yes I still pay tax on my pension) deciding to do this. Paying dividents to shareholders is a more complex matter as many of these shareholders are pension fund holders and the knock on effect could affect all people with non state pensions.

  GANDALF <|:-)> 10:55 31 Oct 08

'there are bonuses on offer if the loan from the government is repaid ahead of time'...I seem to have been on another planet to you. If the loan is paid back before time then they will not have as much interest to pay, they will save money and this is normal business sense not bonus fodder. I would have thought that keeping the staff employed is bonus enough. Paying bonuses is totally ridiculous, especially as they got themselves into this sorry mess by offering financial packages that were not going to work...and they were warned about this. I cannot believe how people are still bending over backwards to pat the banks.

G

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