David Lock

Look I don't know what Diamond earns - all I know is it's too much

Seems to do all right though

http://www.guardian.co.uk/business/2...d-pay-barclays

dl

tony de wonderful

Well as I heard George Soros observe that the financial industry had grown out of all proportion to the economy it served. In effect the near crash was Capitalisms way of punishing this miss-allocations.

I think this is accepted more in the US than here in the UK. Here in the UK we have this blinkered view that because financial services pays x amount of tax and is x amount of GDP, it is somehow a virtue in itself and 'must go on'. The reality is the financial services only ever enables an economy, it is actually parasitic if it grows too large no matter how much tax it pays. How much is too large, well we found out in 2008.

hodgy0_2

and will inevitably lead to asset bubbles

cster

That is an interesting observation.
Perhaps one could argue that it could also be held of the government and the public services it provides.
Not that this (and many other) little piggy is complaining

Trout

iTrader: (1)

Two considerations you need to make in this observation.

One, is that the US banking system needed proportionally more in terms of bailout, for a sector that was primarily servicing the domestic economy.

Secondly, in the UK the banking sector is a contributor to GDP where a great proportion of this comes from none-domestic banking activity. Many international banks run operations out of London, or are headquartered in London so it is effectively an import (HSBC, RBS, Barclays, etc).

Trout

iTrader: (1)

There was a fantastic comment in the Independent today about Liverpool FC.

How low must the club have fallen to be censured by a bank (their shirt sponsor) for their ethical standards

Trout

iTrader: (1)

And he was still a very long way off the highest paid British based CEO of a global firm


And it wasn't a banker

Luan Pra bang

So hold 50% of all banking bonus's back for 15 years and use the money as part of a bail out fund next time they **** up. They all get back what they put in after 15 years without a banking disaster, also make derivatives and futures contracts illegal unless you can prove you are in a position to take delivery of an actual product. I would also put a maximum number of trades per day per trader, perhaps 8 or 9. Too many people get paid based on how many trades they make, nothing about how good those trades are this encourages bad practice . Last I looked a good value real time trader was charging not far off 250 per trade, I don't know how much of that they keep but they had plenty of incentive to convince people to shuffle money around.

jonc

http://www.forbes.com/lists/2011/12/...n-11_rank.html
http://www.forbes.com/lists/2006/12/Banking_Rank_1.html

jonc

And what of the repercussions of these measures to the whole finance sector, it's all very well they should do this and that but never consider the repercussions this would have on the UK's economy. Who in their right mind continue to operate in the UK under those conditions?

Trout

iTrader: (1)

A non-sequitur it would seem...

tony de wonderful

That is a fair point but it doesn't change the essential quality of the sector.

I think you mean export BTW but I know what you mean.

We're just engaged in a zero-sum game, race to the bottom, when it comes to 'attracting' financial services to HQ in this country.

It could be making match-sticks or any industry really. Banking seems a kind of holy cow.

tony de wonderful

Especially if moral hazard is introduced!

jonc

It is in support for the point you made that bankers, whilst highly paid, are still some way off, and by quite some margin, from the CEO's in other sectors. But lets not let it get in the way for some good old banker bashing.

Luan Pra bang

Its the very nature of banking that people expect safe conservative descison making not out and out gambling with their savings and pensions, not in the least because so many people got paid so well to **** up.

Trout

iTrader: (1)

When Bob made £60m, some bloke from Slough made £92m, in a year, selling air fresheners and toothpaste!!!

Was trying to stick to the UK angle - but you are right - true in the US as well.

Bristol98

Best post on here by far!

jonc

At the same time people demand that the banks to give them the best returns possible on their savings and pensions. Sure there are people who would be happy to receive interest a few points above the base rate on their investment, the banking industry could plod along giving everyone mediocre returns. But as investors become more savvy with their money and demand ever more exotic products, the majority expect banks to maximize their return on their investments. I would stick my neck and say that even you have savings and investments that are more than just a safe deposit account.

Luan Pra bang

This is too funny, the only investments I have are shares in Santander and Barclays.

hodgy0_2

but isn't that what they have been doing jon, on the whole, as an industry -- pretty shoddy returns, and poor shareholder value

obviously you will have exceptions, but with such high fees, for a decent return you really have to out perform the average by quite a margin, which the majority don't

tony de wonderful

Only half of investors can out perform a market.

jonc

Well that just proves my point!

Trout

iTrader: (1)

Indeed, deeply ironic

jonc

Not at all. If you pick wisely you can get good returns, I have investments vehicles provided by banks that are currently returning over 16%, sure it's not the greatest but given the current climate, it's a fair return and far better that than any traditional deposit accounts. I'm no investment guru, but all it takes is a little research and if you place any value in your life savings, you make sure you're thorough. I and shareholders know that their investment can go down as well as up.

Sentiment in the banking sector is at all time low, with banks and bankers perceived as pariahs of society by ministers, the media, the general public and what with new restrictive regulations, are you surprised that bank shares are what they are today?