Chillin' out till it needs to be funded
UPDATE: The new levy raises an additional $1.3 bln for the UK government, totaling to $4bln for the year. The small business lending increase envisaged by the final agreement is upwards of $17.5bln and seemingly CEO pay at the banks is contingent on achieving of this target raising Small business lending to $300 bln
Londoners continue to live in a deeply divided world with Canary Wharf pulling away from the rest of the island deriding official policy postures and continuing negotiations and standoffs for over two years as they go ahead with big bang bonuses. The no good Diamond commitment stays par on course.
After Bob the Diamond failed to snap the Lehman Splice in 4September 2008, he managed to make a lot of government squirm as Project Merlin signings are expected to be unable to stop bonuses and trader compensation from creating gazillionaires. The new UK government had hoped that Project Merlin woiuld reach further than bank commitments on higher business lending.
While January reports suggested that the deal on Project Merlin would be signed with bankers committing more money to “big society” projects outside London, the Wharf’s economy has spurned Government strictures on bonuses with a burlesque trapeze of ” the time for apologies is over” from Bob Diamond who is also likely to accepts a nearly $15 m bonus for 2010 even though he had sighed off from bonuses in 2009.
Needless to say, though government excesses are not welcome, this seems unduly and unintelligably aggressive to us. The UK economy is a fine example currently and when 2010 saw a lot of IPOs being canceled, even that is likely to be redeemed with a reduced timeline of 2 weeks from 5 weeks for IPOS from pre marketing to price fixing. HSBC has already left the UK headquarters for Asian seas and Barclays unfortunately cannot stand half over that vacant place. RBS also being a 80% government owned slip shod show, it is time for UK regulators to untangle their claws from the firehose and make some good business decisions for the industry, these unlimited bonuses not being one of them
Update: RBS may be planning $1.5 million bonuses for at least 200 of its staff, David Cameron/Osbourne already blaming the Labor contract with banks for market linked pay in 2010. Overall bonus payments of $1.45 billion for the year are lower than 33% from 2009