Socialist Worker

What a bunch of bankers

Issue No. 2182

Within days of the government’s announcement of a one-off tax on bankers’ bonuses, the slimy boys in the City of London were already finding ways to avoid paying.

One example of this is the “guaranteed bonuses” scam.

Here bankers receive a fixed amount when the awards are paid out. Bizarrely these multi-million pound rewards are exempt from the temporary tax.

The Royal Bank of Scotland, which has taken £45 billion of our cash in bailouts, has hired dozens of senior bankers on such guarantees in recent months.

They were joined by around 300 bankers at Nomura, who struck two‑year guaranteed deals with the Japanese bank when it acquired the European operations of Lehman Brothers.

Barclays Capital, the investment arm of Barclays, also has bankers on guaranteed two-year deals.

Other banks are now converting their bonuses to guaranteed ones to avoid the tax.

One group making a fortune out of the new tax is accountants.

They are hurriedly converting investment banking groups into companies that are no longer called banks in order to help them avoid the tax.

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Tue 15 Dec 2009, 17:35 GMT
Issue No. 2182
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