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These 2 banks are heavily subsidised by British taxpayers yet all we hear from the coalition govt is tough talking but no real action. It is the banks with the financial power not the government.This is totally unacceptable!
From what I can gather from David Cameron's explanation to the media yesterday, the 'reasoning' is that a) the banks have threatened that the 'investor talent' in the banks will simply defect to non-UK banks if they are not 'rewarded' enough to stay, b) the deal seems to be that in return the banks have to support British businesses to ensure the growth of the economy, and c) it is a sort of 'insurance' to prevent the total collapse of our banking system as the country cannot afford to bail out the banks again. Please don't shoot me, creativesaver, I'm only the messenger! :-)
I understand that investment bankers are paid a bonus that is calculated as a percentage of the amount of money they make for the bank from trading financial instruments such as, shares, options, futures and other derivatives. The bonus is part of the agreed remuneration in their employment contract similar to the commission that a salesman gets. It is therefore quite difficult for the government to intervene and refuse to award the bonus.
It's unwillingness, not impotence.
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