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Reckless Bank Chiefs could be sent to Jail

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Reckless Bank Chiefs could be sent to Jail

Post  Panda on Mon 9 Jan - 9:04

Reckless Bank Chiefs Could Be Sent To Jail









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Bank chiefs like Sir Fred Goodwin who 'broke' RBS should be punished says Mr Hancock





5:03am UK, Sunday January 08, 2012





Bank chiefs who put major institutions at risk and damage
the economy could face jail under new laws being considered by
ministers.



The Treasury said a new offence of corporate negligence was among options being considered to punish reckless bankers.


Tory MP Matthew Hancock, a close ally of Chancellor George Osborne,
told the Mail on Sunday it would target those who could be considered
"negligent or grossly negligent in their conduct".


A Treasury spokesman said it would consult on proposals in the spring
but that "all options are on the table" including the creation of a
criminal offence.









The shadow of prosecution will concentrate the minds of those entrusted with institutions of vital national importance.


Tory MP Matthew Hancock









Tougher punishments for bankers who took too many risks were called
for by the head of the City regulator last month after its investigation
into the near-collapse of RBS.


Adair Turner, chairman of the Financial Services Authority (FSA), spoke out after it took no action against the bosses of the part-nationalised bank.


While RBS chief executive Sir Fred Goodwin and his team had made bad decisions they had not broken any existing rules, he said.










RBS was brought to its knees and had to be rescued by the taxpayer



Mr Hancock, previously Mr Osborne's chief of staff, is due to
set out details of the proposed changes later this week in a speech to
the Policy Exchange think-tank.


It comes on the eve of bonus season in the City and amid growing pressure to see high earners held properly to account.


"Those who put our big banks at risk...should be held to account,
just as with those who destroy property or endanger the health of their
fellow citizens," Mr Hancock is expected to say.


"Sir Fred Goodwin broke one of Britain's biggest banks, yet walked
away with a huge pension. I want to see a law which makes it possible to
prosecute executives for serious financial recklessness.


'I would hope such legislation would never have to be used. But the
shadow of prosecution will concentrate minds of those entrusted with
institutions of vital national importance."

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Re: Reckless Bank Chiefs could be sent to Jail

Post  Panda on Mon 9 Jan - 9:19

It"s like closing the gate after the Horse has bolted.

Lloyds Bank, another Government bail-out is facing a £10 Billion loss and its fate depends on Home loans which account for all their
business. With so many Homes being repossessed the future of Lloyds is in the balance.

Ex Barclays CEO earned £4.4 million one year and Directors pay increased 49% last year while average U.K. pay rose 2%

The U.K. has shed 10% of Bank jobs since the Lehmann crisis in 2008.

Remember the threat Bank Traders etc made tthat they would work abroad if their bonuses were affected? I wonder how many will find work abroad now.

Off topic, RollsRoyce sales increased by 31%, doesn"t it make you sick that no Goverrment or British consortium would not invest in
the Company to stop it being sold to Germany.?

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RBS Executive set for £4m Payout reports say.

Post  Panda on Mon 9 Jan - 16:02

RBS Executive Set For £4m Payout, Reports Say









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Royal Bank of Scotland is 83% owned by the British taxpayer





2:43pm UK, Monday January 09, 2012





A senior executive at state-owned Royal Bank of Scotland is
reportedly due to receive a £4m bonus this year, despite the Prime
Minister saying he plans to stop bosses being rewarded for failure.



John Hourican, the head of RBS'
investment banking arm, is in line to receive the special bonus in
April as part of a long-term incentive plan linked to the acquisition of
ABN Amro in 2007, according to the Financial Times and Daily Telegraph
newspapers.


However, responding to the report, an RBS spokesperson told Sky News
that it was "completely inaccurate to imply that any decisions have been
taken" over payouts.










John Hourican has been the head of the investment bank since 2008





Mr Hourican was chief financial officer at ABN Amro Group before heading RBS' investment bank.


The 71.1bn euro (£59bn) takeover of the Dutch bank played a significant role in the failure of RBS.


At the bank's annual general meeting in 2009, the then-chairman of
RBS, Sir Philip Hampton, said: "With the benefit of hindsight it can now
be seen as the wrong price, the wrong way to pay, at the wrong time and
the wrong deal."


David
Cameron has said he is determined to end the "merry-go-round" of
super-rich bosses rubber-stamping each other's enormous salaries and
being rewarded for failure, adding that he wants to make changes this
year.



In an interview with Sky News he said he would not comment on
individual cases but suggested the RBS deal may have been agreed before
his administration came to power.


"We've taken tough action... the overall level of bonuses has come
right down but we're looking more broadly at top pay to make sure it is
linked to success," he said.






RBS Share Price 6-Month Chart







A Downing Street spokesman said UK Financial Investments, which
represents the Government's interests as a shareholder in partly
state-owned banks, will "engage with RBS to discuss executive pay over
the coming weeks and will make sure that pay reflects and rewards
performance".


The Government holds 83% of the shares in RBS, but ministers cannot
intervene directly in decisions on bonuses, as the bank is operated at
"arms length".


Mr Hourican oversees 19,000 employees across 39 countries at the
bank's global banking and markets division, which provides financing,
risk management and advisory services to public and private
institutions.


The benefits expected in April are almost 29 million shares and
options granted in 2009 as part of a long-term initiative to restructure
the group, according to the Financial Times.


However, in recent months RBS has been moving to offload assets,
including the division that Mr Hourican leads, as it tries to repay some
of the £45bn bailout it was given.









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