Foreign banks join campaign to show restraint
Foreign banks operating in the city of London have today agreed to join the FSA's campaign to show restraint in banking remuneration and bonus packages. This comes on top of the recent agreement with the top five banks in the UK to take into account risks when looking at remuneration packages and bonus issues. But will this really work in practice?
In theory this is seen as a major breakthrough for the FSA (Financial Services Authority) but in reality it may be nothing more than window dressing. When the UK economy recovers and the world economy continues to boom we will see banks revert to normal and banking remuneration and bonuses start to grow again. While the idea is good it will be almost impossible to police in practice because of various ways in which rewards can be paid in the sector.
There is no doubt that the UK banking sector is under severe pressure at the moment and while many of the overseas operators may be financially stronger, it is the sector as a whole which could hold the economy back in the short to medium term. Perhaps we need to start concentrating more upon increasing business levels rather than restraining remuneration and bonus packages?
Share this..
Related stories
Pension protection fund under pressure
The UK government is under serious pressure to make large-scale changes to the U.K.'s pension protection fund which has revealed a deficit of £1.23 billion for the current year. This is a massive increase on the £517 million deficit last year and calls into account the way the system has been set up and whether it is a long-term viable option for the UK government and UK regulators.
Read More
Jobseekers told to take zero hour contracts or lose benefits
07/05/2014 Jobseekers have been told they could face losing their benefits for up to three months if they turn down zero-hour contract jobs. Until recently people have been able to refuse such jobs without being penalised. However, as the new ‘universal credit system’ is rolled out, people will have to accept casual contracts or face losing their benefits. A zero-hour contract essenti...
Read MoreIs Sainsbury now in play?
Despite the fact that the Sainsbury share price has fallen back from recent highs amid speculation of a potential bid for the company many people now believe that the company is "in play". The Qatar Investment Authority (QIA) already holds a significant stake in the operation and indeed launched an unsuccessful bid just two years ago. There had been speculation that the QIA was in fact looking to...
Read MoreDavid Cameron to get personal with attack on Labour leader
David Cameron will this week light the blue touch paper for the forthcoming UK election with a highly personal attack on Gordon Brown and his "secretive, power hoarding, controlling character". In what is sure to be one of the most personal attacks ever released by the Conservative party leader he will list a number of U-turns and "cynical attempts to save his own skin" which he believes will show...
Read MoreMore Strikes And More On The Way
After this weeks strike by nearly 1 million council workers across the UK it has been announced that staff at the Northern Ireland passport office have voted to strike over pay. This is yet another nail in the coffin of the UK government and has prompted claims that Old Labour is back bigger and stronger than ever!
The Unions have been making serious noises for a number of months n...