Legal & General cut terminal bonus rates
In a move which was to be expected but is still very painful after the introduction of the with-profits exit fee adjustments, it has been revealed that Legal & General will be cutting terminal bonus rates on with profits funds by between 5 and 9 percent as a consequence of the fall in investment markets. It seems that after a period of calm reflection the insurance industry is now waking up to the problems which may lie ahead.
While shareholders of Legal & General will be happy this means that yet again customers and the general tax payer are set to lose out at a time when tax payer's are already funding the massive bailout. We have seen energy costs continue to rise, we have seen with profits returns slashed and we now face the threat of a recession - talk about hitting the tax payers when they are down!
However, the brutal fact is that we are no where near the bottom of the market at the moment and there will be substantially more pain before we start to see any recovery. The Labour Party spin doctor tactics which are coming back to life may well do more harm than good with the UK voter not in the mood for childish games while we all suffer.
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