Monday, January 30, 2012

Oligodontus outrage II...

RBS chief Stephen Hester's decision not to take a bonus had become inevitable but "This sorry RBS saga isn’t over yet" [City A.M.]. Order-order highlights the obvious immediate result (click on image) with £320m wiped off RBS's value: "With mob mentality over-ruling contracts, there are obvious jitters around the banks this morning." Guido reiterates what I hinted at yesterday, "[despite] the glaring hypocrisy of sitting in the cabinet that drew up Hester’s contract, this is a short-term political win for Miliband". More amusingly we have: PM "moves to avert resignations at RBS over bonus restrictions" ...[link] (hehehe).

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Paul said...

The £320 m wiped on RBS value stick is something the city and their friends will beat us all with and its a pack of lies designed to slowly ease the value back-up so that the city gets its trading bonuses again. The taxpayers will 'lose' simply because the city will have its way. The value of those shares hasn't gone down in real terms, if anything it should have gone up but the market couldn't possibly see it that way.

I find the political side of this, both Labour and Conservative, quite insulting. Cameron could have easily changed the conditions of Hester's contract in the same way that public sector workers contracts of employment are constantly changed, only Boris seems to have any balls these days.

Span Ows said...

Correct, the share price will bounce around anyway. Insulting is a good word for the whole fiasco.

The Great Gildersleeve said...

Its ironic to have the wealthy and millionaires in Government going on about this. Probably they hope it makes them look as though they are with "The People" and yet many in population feel that the politicians are as bad as any banker.

How many still are unhappy about how the expenses scandal was handled?

And every so often whether innocent until proven guilty are we going to see MP's being investigated/charged over something that's a bit suspect, it doesn't help to get the public on your side.

It just adds to suspisions and anger in the population and how cynical we have become.

Of course the ppulation talks about banker's bonuses and pay if asked and the media whips up the interest but I never heard it talked about when I was out and about so are people really that bothered? It's another world.