Current Affairs The Labour Party

[Spadge Vernacular]

Actions speak louder than words.

Indeed, a labour win with Libs in opposition would be wonderful, Greens in third party time.

 

[efcste97]

So has the cap changed behaviour in the industry? I'm assuming as you're in favour of keeping it that you had evidence as to its efficacy.

The cap helped to curb excessive risk-taking by reducing the incentives for bankers to engage in high-risk, high-reward activities, I'm not going to explain what caused the crash cos I'm sure you know i.e., subprime lending, mortgage backed subsidies, short term focus over long term stability, no risk management etc etc. Maybe the cap helped to stop high risk taking? But who am I to say, the cap hasn't been lifted for long so we'll have to see what happens, if regulated correctly, it could help the UK i.e. if there's a crackdown on excessive tax avoidance strategies.

I can provide evidence that MRTs fixed wages increased during the time when the cap was introduced (100% cap btw, 200% with 'special permission')

 

[NilSatisOptimum]

You'll see how much Starmer can be trusted.

Did you believe his promises when he stood for leader?

Get ready for more of that ditching of policy and principle....the comical thing is that those of us who detest Starmer and his ilk and those who are willing to hand them a chance each KNOW that he'll ditch any progressive policy.

That's probably more to do with where the majority of the voting electorate is at. And if he does ditch more policy once in power then he will suffer the same fate as recent Tory leaders... What this country needs currently is sensible coherent government that lay sdown some firm foundations. We will see what grows out of that.

 

[Goat]

...and then from the 5 July?

Victory.

 

[Rita_Poon]

Victory.

 

[Bruce Wayne]

The cap helped to curb excessive risk-taking by reducing the incentives for bankers to engage in high-risk, high-reward activities, I'm not going to explain what caused the crash cos I'm sure you know i.e., subprime lending, mortgage backed subsidies, short term focus over long term stability, no risk management etc etc. Maybe the cap helped to stop high risk taking? But who am I to say, the cap hasn't been lifted for long so we'll have to see what happens, if regulated correctly, it could help the UK i.e. if there's a crackdown on excessive tax avoidance strategies.

I can provide evidence that MRTs fixed wages increased during the time when the cap was introduced (100% cap btw, 200% with 'special permission')

Interesting article on this, which itself talks about some analysis done by the BoE

Lifting the cap on bankers’ bonuses – what does this really mean?

www.charteredbanker.com

 

[efcste97]

I do think your view on the bankers bonus is not understanding the tax system. You understand that when an employee earns an bonus it is as a lump sum, meaning when it comes out their pay check you are taxed the maximum rate and with most bankers being graduates they also pay a fee of their student loan back which is of great benifit to the education coffers. Therefore it is not all profit for the worker but is healthy numbers for the tax man that's why the government are not keen on removing bonuses for bankers.

Also middle/High level salaries are the biggest benefit to the tax system and it is significantly more beneficial in the a workers packet than in the companies profits.

They wouldn't be removing bonuses, bonuses have never been removed, they where capped to 100% (200% with approval from shareholders) under eu law and for good reason also.

 

[Xizor]

When you have a party committed to protecting banker's bonuses while being unwilling to break the two children cap on child benefit, that trumps some utter BS about ruling for the working people of the country.

Sure, I'll have to hold my nose when I lend him a vote. The way you're doing with Galloway's mob and their *checks notes* homophobia.

 

[davek]

That's probably more to do with where the majority of the voting electorate is at. And if he does ditch more policy once in power then he will suffer the same fate as recent Tory leaders... What this country needs currently is sensible coherent government that lay sdown some firm foundations. We will see what grows out of that.

What we need is an end to austerity and massive investment in infrastructure and a huge increase in spending on our local authorities to get on top of the social welfare crisis.

What Starmer is offering is a guaranteed, baked-in continuation of austerity...because the spending he proposes wont cut muster and there'll be no growth in the economy to increase revenue in sufficient quantity to take up the slack.

I know it, you know and so does everyone else.

They are not the official Tory Party. That's why they're getting into power. Period.

Once that happens then they'll fail every single day in office. Absolutely copper fastened on that is.

 

[efcste97]

Interesting article on this, which itself talks about some analysis done by the BoE

Lifting the cap on bankers’ bonuses – what does this really mean?

www.charteredbanker.com

'The Bank of England’s Prudential Policy Division acknowledge the broad consensus that some senior bankers’ renumeration packages contributed to the Global Financial Crisis' The FCA are going to have a job on it's hands ensuring bankers don't slip back into their own ways, a drop in fixed wages and a reliance on bonuses would be a bad thing overall...

 

[Bruce Wayne]

'The Bank of England’s Prudential Policy Division acknowledge the broad consensus that some senior bankers’ renumeration packages contributed to the Global Financial Crisis' The FCA are going to have a job on it's hands ensuring bankers don't slip back into their own ways, a drop in fixed wages and a reliance on bonuses would be a bad thing overall...

They also appear to say that the cap on bonuses meant that more money went into fixed salaries, which made it harder to weed out the bad eggs.

 

[Sean Ashley]

The cap helped to curb excessive risk-taking by reducing the incentives for bankers to engage in high-risk, high-reward activities, I'm not going to explain what caused the crash cos I'm sure you know i.e., subprime lending, mortgage backed subsidies, short term focus over long term stability, no risk management etc etc. Maybe the cap helped to stop high risk taking? But who am I to say, the cap hasn't been lifted for long so we'll have to see what happens, if regulated correctly, it could help the UK i.e. if there's a crackdown on excessive tax avoidance strategies.

I can provide evidence that MRTs fixed wages increased during the time when the cap was introduced (100% cap btw, 200% with 'special permission')

Again generic terming bankers as only workers who work mortgage backed securities function of the business which would make up a small fraction of the workforce. Should all individuals who work in the banking sector face the same cap based on a few workers actions?

It isn't just a UK issue the industry is decided more based on US activity then ourselves (Why the phase when the U.S Sneezes the world catches a cold was apt during the 2008 crisis) it was their defaults on these mortgages that tanks other economies should we tell the U.S the levels of bonuses they should give to their bankers? And therefore the tax their citizens should pay?

But it isn't just the approval of bad mortgages that is an issue in the sector it is the gambling of these loans after the fact that was a huge factor caused the crash as that was what tanked some banks aka the Lehmann brothers.

They wouldn't be removing bonuses, bonuses have never been removed, they where capped to 100% (200% with approval from shareholders) under eu law and for good reason also.

I know of the cap I have relatives who have or do still work in banks and they inform me on these bonuses, again a common theme in here people tend to input when they don't face the reality of the actual scenarios and just use fancy words or pull articles to suggest they know more.

Anyway it really isn't meaningful to this election, where people care more about their financial situation and not if a banker will get a bigger bonus.

 

[efcste97]

Again generic terming bankers as only workers who work mortgage backed securities function of the business which would make up a small fraction of the workforce. Should all individuals who work in the banking sector face the same cap based on a few workers actions?

It isn't just a UK issue the industry is decided more based on US activity then ourselves (Why the phase when the U.S Sneezes the world catches a cold was apt during the 2008 crisis) it was their defaults on these mortgages that tanks other economies should we tell the U.S the levels of bonuses they should give to their bankers? And therefore the tax their citizens should pay?

But it isn't just the approval of bad mortgages that is an issue in the sector it is the gambling of these loans after the fact that was a huge factor caused the crash as that was what tanked some banks aka the Lehmann brothers.


I know of the cap I have relatives who have or do still work in banks and they inform me on these bonuses, again a common theme in here people tend to input when they don't face the reality of the actual scenarios and just use fancy words or pull articles to suggest they know more.

Anyway it really isn't meaningful to this election, where people care more about their financial situation and not if a banker will get a bigger bonus.

I'm sorry, i just don't believe in neoliberalism capitalism and uncapping bankers bonuses is ultimately that. I'm anti 'trickle down' economics as I believe its created the wealth inequality we have today. Ultimately it may not have a big impact overall, it'll have positive/negative impacts just like when the cap was in place.

 

[Sean Ashley]

I'm sorry, i just don't believe in neoliberalism capitalism and uncapping bankers bonuses is ultimately that. I'm anti 'trickle down' economics as I believe its created the wealth inequality we have today. Ultimately it may not have a big impact overall, it'll have positive/negative impacts just like when the cap was in place.

I appreciate that and would love to see that exist. But unfortunately that isn't something has ever been shown in society, the rich hoard the wealth and the poor stay poor. May sound negative I just don't like to hide the way things work and will continue to work.

 

[Thomasc]

At last, a policy we can all embrace and get behind together!