Sunday, 8 February 2009
Why Are RBS Bankers Getting Bonuses?
image credit DK Images
It seems that the bankers at the Royal Bank of Scotland are intent on paying themselves massive bonuses out of the cash the taxpayer has given them to sort their abysmally run operations.
The jaw dropping arrogance of these people just underlines their sense of untouchability and distance from the 'real world'
There is much talk at the moment of reviewing the management systems and methods of banking practices. I don't hold out much hope for any major impact because the people involved are imaginative and knowledgeable enough to devise methods to circumvent any attempts to inhibit their excesses.
These people see themselves as Rule Makers not Rule Takers They devote a huge amount of intellectual effort into devising and playing systems. Strip away the facade of the Banker and you see them for what they really are.
If asked asked about their 'job' they will explain what it IS that they do, and provide rationally plausible answers in terms of the mechanics of the financial products they devise and sell. They will never tell you what they really DO, because that would reveal their secret. What they DO is devise financial instruments and methods that are capable of general personal wealth using 'other people's money'
This habit is so ingrained in the Banker's DNA that they are impelled to behave in this way regardless of circumstances. How else can any of them explain the payment of performance bonuses in the current climate? "It's just something we 'DO'. We line our pockets with other people's money don't we! Have you got a problem with that? It's all clearly laid out in our psychological contracts you know!"
And, of course, the next move, if the cash bonus is too crass, will be to 'renumerate' by other methods, 'gifts', shares etc. So let's all watch out for this and stop it too.
Senior bankers need to be hauled before a Parliamentary Committee in order to explain their philosophy and to to justify their intended courses of action. They need to behave like the Civil Servants they have now become. They need to explain why they believe it is OK to take advantage of millions of people on top of the woeful mess they have already created. I can't imagine any of them are capable of answering questions in a satsifactory mannner, because the lack any practice in being forthright and speaking with veracity.
Time for some pig farming and it looks like Farmer Brown is getting his pole axe ready
Gordon Bown Angry At Bonuses