HBOS chief under attack over leaving package
Peter Cummings, formerly of HBOS, is this evening under attack for his £660,000 "parachute" and a £5.9 million pension pot. In what many see as the next stage of a government campaign to blacken the name of many former stars of the UK banking sector, the former head of corporate lending at HBOS could well see part of his remuneration package reclaimed by the authorities. However, is this the real point of the UK banking rescue?
As banks continue to hold back on increasing UK lending, savings rates continue to plummet and the UK taxpayer continues to fund many of the best-known UK banks the government is more interested in blacken the name of those it courted in the past. The vast majority of former chairman and former chief executives of the fallen UK banks have at some point been part of the government's "circle" of financial advisers. They have assisted with a vast array of funding arrangements for UK government investment plans and now they are being hung out to dry.
While there is no doubt that mistakes have been made it is worth remembering that each and every bank in the UK, and each and every company, has a board of directors for a particular reason, to ensure the smooth running of the operation and that the correct decisions are made. While the chief executive and chairman hold the highest rank in any organisation, they are not the be all and end all of all decisions.
Share this..
Related stories
UK government announces plans for banking carve up
The UK government has today announced plans to force Lloyds bank and Royal Bank of Scotland to disinvest themselves of various banking networks over the next four years as a means of increasing competition in the UK banking sector. This will see more companies operating in the UK financial sector but is seen by many as a case of trying to pre-empt EU Commission conditions with regards to state aid...
Read MoreEnergy companies poised to raise tariffs again
Energy companies are poised to exacerbate conditions for consumers who are already struggling with rising day to day living costs with further increases to tariffs this year, it has been claimed. According to energyhelpline, the average family's gas bill is set to rise as a result of wholesale gas prices doubling recently. This in turn could drive the typical gas bill up from £665 to £1,091 per...
Read MoreIs the US Federal reserve base rate cut enough?
It has been announced that the US Federal reserve have cut US interest rates by 1% this evening in the hope that this will stimulate the US economy which has been in a downtrend for some time. The move was very much expected by the stock market and the UK government is expected to follow suit over the next few days.
However there is an ongoing debate as to whether the interest rate...
Businesses Expect Recession to Continue
A poll from members of the Institute of Directors (IoD) has revealed that the majority of British businesses expect the recession to continue for the rest of the year, into 2013. This demonstrates the low confidence that UK businesses have in the economy, and should act as a wakeup call for the Government, who should be doing more to restore this confidence, according to the IoD. The poll,...
Read MoreCoventry building society in merger talks with smaller competitor
The Coventry building society has today confirmed talks are progressing with the Stroud and Swindon building society to create a group which would have around £20 billion in assets. While talks are at a very early stage it is believed that the Coventry building society, with 1.2 million members and 48 branches, and the Stroud and Swindon building society, with 265,000 members and 43 outlets, are...
Read More