Thursday, 21 November 2013

Rewarding bankers at the expense of the taxpayer

How ironic that the chair of the Business,Innovation and Skills select committee thinks that handing over more fees to the banks, which set the sale price of Royal Mail far too low, would "reward bankers at the expense of the taxpayer". This is what successive governments have been doing for years, and continue to do so, even after the financial disaster their greed caused in 2008. £375bn of quantitative easing was not enough for the banks, even though there was no requirement imposed on them to lend to small businesses in order to kickstart the economy. Rich bankers were given huge amounts of  money by the chancellor`s reduction of the top rate of income tax, and when the EU at last decided to cap bankers` bonuses, it was the same chancellor who flew to Brussells on their behalf, claiming the cap`s illegality. Despite their fraudulent behaviour, with the mis-selling of PPI, Libor fixing and manipulation of currency markets, with even some laundering of Mexican drug money as well, bankers face few, if any, criminal charges, and their CEOs whose astronomical pay is always justified by their huge responsibilities, never actually take the responsibility for their underlings` abject behaviour.
    Of course they should not be paid the extra millions; as their incompetence cost the Treasury possibly billions, they should be returning the money already paid. However, as the Tory-led coalition was so willing to accept the low valuation, it is likely they considered possible extra votes gained in the 2015 election as good value. However, value for the taxpayer was never a consideration; they would never have sold a business bringing in £200m profit a year if it was!


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