Stop the fat-cat bonuses! George Soros turns on the bankers

[cal04]

As bailed-out institutions plan to share billions among staff, top figures in the City – including bank directors – call on the Government to take decisive action at last
http://www.independent.co.uk/news/business/news/stop-the-fatcat-bonuses-george-soros-turns-on-the-bankers-1809138.html

British banks have just five working days to show they have "got it". On Saturday, they must submit to the regulator – the FSA – their planned bonus awards, widely estimated to total £6bn. Prince Andrew may have said in an interview that he regards this sum as "minute in the scheme of things", but, as the economy still falters and unemployment rises, it was clear last night that the banks will grant themselves their billions in an increasingly hostile atmosphere.

George Soros became the latest high-profile figure from the world of finance to condemn the bankers, and call for watertight restrictions on their activities yesterday. He said: "Banks are actually getting hidden subsidies of enormous amounts because of their ability to borrow at effectively zero, and buy 10-year government bonds at 3.5 per cent. So those earnings are not the achievement of risk-takers. These are gifts, hidden gifts, from the Government, so I don't think those monies should be used to pay bonuses. So there's a resentment which I think is justified."

And, as increasing numbers wonder why the United States' decisive action to cap bonuses in firms taking public money has not been matched in Britain, there are now signs of a hardening of attitudes towards bankers inside the City. The Square Mile grandee Sir David Walker, The Independent on Sunday understands, is now expected to call for them to be banned from paying guaranteed bonuses in his forthcoming report on corporate governance. He is believed to have been impressed by the growing acceptance among big institutional investors, and even the banks themselves, that paying out huge salaries and bonuses may have exacerbated and contributed to the banking crisis. One source said: "Everyone knows the levels of bonuses are quite insane. None of the banks dare break ranks and stop paying such big bonuses because they are frightened traders will jump ship to another bank, or overseas. That's why many actually want to be told what to do."

(snip)
What is significant about the signals being picked up by this newspaper is that this mood of anger at the bankers, and their disconnection from the world inhabited by the rest of the economy, is being echoed by the likes of Mervyn King and George Soros. In an interview with the Financial Times, Mr Soros said there was a need to regulate payments to employees, even if that meant banks found it hard to retain talented risk-takers. He said: "That would push the risk-takers who are good at taking risks out of Goldman Sachs into hedge funds, where they actually belong, because hedge funds take risks with their own capital, not with deposits and not with government guarantees."

[Divine Discontent]

1. meaning - there's hundreds of dirty stinking money-grubbing thieves who need hauled off

I wish someone would do it....

[OHdem10]

2. Read that last paragraph---Paul Volker has been calling for this.

Separate Banks from Hedge Funds. He does not believe he is being heard.

[elleng]

6. I suspect he's being 'heard,' and ignored.

Unfortunately 'we' failed to put any requirements on the banks. If not REQUIRED, won't happen.

[obliviously]

3. I agree but how many billion is Soros worth now?

[Patchuli]

4. That's got nothing to do with the subject

George Soros didn't earn his money stealing from us...

[obliviously]

5. He was convicted of stealing money in france.

George Soros
His Crime: Though better known for his social activism and philanthropy, billionaire investor Soros was fined $2 million by a French court in 2002 for insider trading of shares of Société Générale. On appeal, France's highest court upheld the ruling in 2006.
http://money.aol.com/investing/famous-financial-felons

[Patchuli]

9. Well if he paid his fine

then I guess it's water under the bridge. He's still better known for good deeds than bad.

[elleng]

7. MANY billions,

and he knows how the games are played. We can learn a great deal from him and others similarly situated.

[obliviously]

8. And how I wish I had when I got out of school!