Bonus Season has begun again and already there is controversy and outrage over RBS' plans to award its bankers over £250milion of bonuses whilst it faces a fine of over £500m for libor rigging.  RBS is over 80% publically owned meaning that both fines and bonuses are being paid by the taxpayer.
Whilst MPs on the Parliamentary Commission on Banking Standards have slammed Barclays over their executive remuneration policy after an ex-board member revealed that levels of pay had become 'obscene' and that a 'culture of entitlement had evolved'.

Campaign group Move Your Money are calling on customers to take a stand and move their money out of their bank if they are outraged by the levels of high pay and bonuses.

Laura Willoughby MBE, Chief Executive of Move Your Money campaign said:

"We cannot allow bankers to be rewarded for failure.  The last twelve months have seen scandals such as mis-selling, money laundering and Libor-rigging and there is more to come.  Big bonuses for bad behaviour  are trapping british banking in a viscous downward spiral that is destroying one of our key industries.

"The big banks are handing out millions in bonuses despite plummeting share prices, awful customer service and a slew of scandals and fines. Ultimately it's the taxpayer and customers who are picking up the bill whilst the country heads for triple-dip recession. We need to pick up our current accounts, savings and debts and walk away. There are better alternatives out there."

Santander is set to be the first to announce its bonus pool.   But earlier this year Santander UK was fined £1.5m by the City regulator for failing to make clear to thousands of investors that two of its investment plans were not fully covered by the Financial Services Compensation Scheme, despite the fact that both were sold as "guaranteed" bonds.  Like last years Santander UK's profits are down 10%. In 2012 Santander UK chief Ana Botín took home £4m in pay and bonuses as a reward. What will she get this year?

To add insult to injury HSBC have appointed David Hartnett, the former head of HMRC who was accused of allowing big firms like Vodafone and Goldman Sachs off large tax bills.

Move Your Money

Move Your Money

Laura Willoughby MBE, Chief Executive of Move Your Money campaign said:

"to cap it all Dave Hartnett's appointment is yet another example of the revolving door between the big banks and the regulators who are supposed to hold them to account.

"Whilst at HMRC, Hartnett was the UKs most wined and dined civil servant and signed sweetheart deals with some the UK biggest corporate tax avoiders. How can HSBC's customers trust him to root out criminal activity in one of Britain's most scandal ridden banks?"

Comment Here!

comments