Socialist Worker

Bailed-out bankers are getting bumper bonuses

by Tom Walker
Issue No. 2186

The banks are set to announce “profits” of up to £25 billion—and pay out huge bonuses to top bankers.

After being propped up with hundreds of billions of pounds from us, they now claim to be making money again.

Analysts estimate Barclays alone will report profits of £10 billion. Its directors are to get their bonuses deferred until 2013—so they can avoid public anger.

And it’s not just “profitable” banks that will be splashing the cash.

Bailed-out bank RBS is 84 percent publicly owned. It has made a loss of up to £6 billion. Yet it is still planning to pay more than £1 billion in bonuses, a spokesperson said.

Labour’s City minister Lord Myners called this a “show of restraint”.

This flagrant gluttony is taking place in spite of a new poll revealing that three out of four people want a harsher crackdown on bankers’ pay.

And some 78 percent support the idea of a supertax on bankers’ bonuses.

Almost seven in ten go further, wanting a cap on all high salaries.

Support is highest for capping the pay of corporate executives—eight in ten back it.

The Financial Times/Harris poll also asked who was responsible for the crisis.

Some 38 percent said the banking industry and 18 percent national governments.

And 13 percent chose “the economic model as a whole”.

Tories are a bunch of bankers

Dozens of Tory general election candidates are rich bankers, a study shows.

More than 60 candidates work in banking and finance.

They include Tim Archer, who is head of “cash performance” at Barclays.

Gareth McKeever was an executive director of Morgan Stanley until recently.

Among their MPs, Oliver Letwin and John Redwood are directors at NM Rothschild.

Francis Maude is a former Morgan Stanley managing director. The GMB union’s study also shows more than half are “managers and senior officials”.

And the rest have “professional” or “technical” occupations. Less than 1 percent have ordinary jobs.

Fred the Shred’s feathered bed

Sir Fred Goodwin, the banker who almost bankrupted RBS, has landed a cushy new job.

He is working as an “adviser” for architects RMJM—on £100,000 a year.

His new job is to help lay off a third of the workers and impose pay cuts on the rest.

Goodwin has no experience whatsoever of architecture. But he did build up a £28 billion debt at RBS, the biggest loss in British history.

And happily he will be among friends at the architects’ firm.

RMJM boss Sir Fraser Morrison owns the French mansion that Goodwin used to hide from public anger last year.

Goodwin retired from his £4 million RBS job at 50—with a £342,000 a year pension.

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Article information

Tue 26 Jan 2010, 19:23 GMT
Issue No. 2186
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