Saturday, February 7, 2009

RBS to give it's bankers a $1.5 billion dollar bonus

That's right, Royal Bank of Scotland, which needed a $30 billion rescue plan from Britain is now paying out big bonuses.

RBS said it was "contractually obligated" to pay these bonuses.

Isn't that special.

None of these banks have any qualms about tearing up their contracts when they provided funding to mergers, bridge loans, credit lines or private equity, but when it comes to their own people, they are "contractually obligated."

Once again, isn't that special.

Look what RBS had to say:

RBS, which has a new chairman and chief executive in place of their sacked predecessors, is sensitive to accusations that it is paying “rewards for failure”. Stephen Hester, the new boss, will give evidence to the Commons Treasury select committee on Wednesday, when he is likely to be questioned about the bonuses. His predecessor, Sir Fred Goodwin, will appear on Tuesday.

Now these banks are pretending that they have taken the Alan Alda course on sensitivity training!

Here's what Alistair Darling, the Chancellor of the Exchequer had to say:

I know people feel angry about excessive bank bonuses. And directors have a duty to ensure that their banks behave responsibly. People who work hard should be rewarded for their effort. But it would be wrong to reward people whose excessive risk-taking brought the banks down, causing misery to millions of their customers. Success should be rewarded. Failure should not...

Banks everywhere took on too much risk, and worse, risk that they didn't properly understand.

So give them a bonus for not understanding their job!

And tell the public you understand their anger, but first, let's pay our bankers bonuses!

No comments: