US government introduces pay restrictions to bail out banks
It has been revealed that the US government has introduced significant pay restrictions for executives working at banks which have been bailed out by the authorities. The move comes after severe criticism of Wall Street in general and public anger at the substantial bonuses and pay agreements being negotiated. This is occurring despite the fact that many of Wall Street's more prominent financial businesses are currently being financed by the US authorities.
The UK government has yet to introduce significant pay restrictions for businesses which have been bailed out by the UK taxpayer but there is severe pressure to do so. Now that the US authorities have instigated such a move it would appear only on time before the UK government follow suit. However, they may need to act quickly because there is growing resentment amongst UK taxpayers at the payment of substantial bonuses to companies which were literally on the verge of bankruptcy.
There is a very thin line between employing the best in the industry, to protect taxpayer's assets and improve financial operations, and giving the impression of "jobs for the boys" with significant remuneration. Gordon Brown missed the opportunity to install the significant pay restrictions during the first rescue package and cannot afford to do so with this one.
Share this..
Related stories
Charcol slates Chancellor's mortgage purge
After new chancellor of the exchequer Alistair Darling revealed radical plans to get more people long-term fixed rate mortgages, many lenders have reacted with displeasure.Mr Darling claimed that mortgage lenders tended to restrict consumers to short-term mortgages in order to charge extortionate arrangement fees.Yet, a spokesman for online mortgage broker Charcol insists that, to the contrary, le...
Read MoreWhen will UK taxes start to fall?
As we see an increase in both direct and indirect taxes across the UK a number of consumers are starting to ask when we could see UK tax rates fall back. The problem is that with the UK budget deficit set to hit nearly £700 billion over the next four years there is a growing black hole for taxpayers to fill in due course. Recent forecast suggests upwards of £2000 per taxpayer in UK would be requ...
Read MoreTesco chief executive in the money
It has been revealed that Sir Terry Leahy, the chief executive of Tesco, received around £5.2 million in salary, bonus and shares last year as well as seeing his pension fund increase by 16% to £15.9 million. This comes at a time when Tesco is pushing ahead with a major expansion program, moving into new areas of the UK business arena, although the company has lost momentum of late in its core s...
Read MoreCity analysts forecast 3 million unemployed by 2010
City analysts are forecasting the rate of UK unemployment to increase to around 3,000,000 by 2010 as the effects of the UK economic downturn continue to impact upon business levels. We have seen around about 5000 jobs lost today and this is starting to become something of a common feature in the business headlines.
There are a number of issues regarding a rise in unemployment, none...
Fitch downgrades Irish credit rating
The Irish authorities suffered a further setback today with news that Fitch, the credit rating agency, has downgraded Irish sovereign debt to A+. To add further insult to injury the rating is still on a negative outlook with the chance of a further downgrade in the short to medium term. This comes only hours after news that another credit rating agency has also placed the Irish credit rating on ne...
Read More