Goldman Sachs bankers 'immoral' for delaying bonus to dodge 50p tax


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Goldman Sachs bankers ‘immoral’ for delaying bonus to dodge 50p tax

Goldman Sachs bankers ‘immoral’ for delaying bonus to dodge 50p tax
Goldman Sachs was branded “immoral” by Margaret Hodge, the chairwoman of the Public Accounts Committee, last night for plans to hold back UK bonuses to avoid the 50p income tax rate. Two rival investment banks, Morgan Stanley and Citibank, have made it clear that they would not follow suit.
The Times, p. 10
Also appeared in : The Independent, p.2, The Guardian, p.23, Independent i, p.6

Pensions reform will mean ‘vast majority’ receiving less – and working for longer
The “vast majority” of people will be worse off under a major shake-up of the state pension, experts warned last night as the Government admitted that employees will have to work until they are older before receiving it. Today’s younger workers will likely have to carry on working into their 70s so that the new single-tier pension of a minimum £144-a-week can be afforded by future generations.
Independent i, p. 4
Also appeared in : City AM London, p.1, City AM London, p.2, Financial Times, p.3, Metro London, p.4, The Daily Telegraph, p.4, The Daily Telegraph, p.4

Upbeat Taylor Wimpey gets house in order
One of Britain’s biggest house builders, Taylor Wimpey, is expecting its full-year operating profits to increase by 40 per cent as its strategy of buying cheap land and cutting costs begins to pay off. Pete Redfern, its chief executive, said that the gradual recovery in the housing market last year looked set to continue into 2013 as big lenders reduced their mortgage rates.
The Times, p. 37
Also appeared in : Independent i, p.41

Wealthy still favoured
Research from e.surv has stated that banks are lending to wealthier borrowers while many first-time home buyers are losing out, despite the introduction of the Bank of England’s Funding for Lending Scheme in August.
The Times, p. 29

Bank could use new powers to curb mortgage lending
Britain’s banks face an unprecedented level of regulatory intrusion under new powers that will allow the Bank of England to crack down on specific activities, from mortgage lending for first-time buyers to off-balance sheet securitisations.
The Daily Telegraph Business, p. 1

Bankers want tougher rules
Retail bankers should be more closely regulated, the authorities should give tighter guidelines on training and more resources should be devoted to enforcing laws on fraud, the British Bankers’ Association said yesterday.
City AM London, p. 5

JP Morgan ordered to tighten risk controls after Whale losses

JP MORGAN Chase was last night ordered by regulators to tighten up risk controls after a trader known as the London Whale lost the firm $6.2bn
City AM London, p. 3
Also appeared in : International Herald Tribune, p.17, The Daily Telegraph Business, p.1, The Times, p.32, The Times, p.37

Sackings of finance staff at five-year high
The number of staff being sacked or suspended at financial institutions for wrongdoing has reached a five-year high, figures have revealed. Data obtained through the Freedom of Information Act show that last year 1,373 employees were dismissed or suspended from financial services jobs in Britain – a 76 per cent rise on the previous 12 months. The figures exclude staff who lost their jobs through general redundancy schemes.
The Daily Telegraph Business, p. 6

Barclays and Deutsche to cut back bonuses
BANK job losses are set to be matched by tough bonus cuts as the industry seeks to keep costs under control, with Barclays and Deutsche Bank yesterday joining the long list of institutions thought to be preparing to keep a tight hold on the purse strings.
City AM London, p. 3

Top banks back new watchdog for sector
Britain’s largest banks have backed the creation of a tough new professional standards body for the UK’s beleaguered financial sector.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 15

Watchdog says stability rules will hit growth
Raising capital requirements for bank lending will promote financial stability but will also increase the cost of credit and hit the economy in the short run, the Bank of England acknowledged yesterday.
City AM London, p. 9

Icap sells stake in post-trade firm to seven-bank consortium
ICAP, the world’s largest interdealer broker, yesterday said it had sold a 12 per cent stake in post-trade processing firm Traiana to a consortium of seven banks, valuing the business at $300m (£186.5m).
City AM London, p. 7

Shanks nets £750m waste deal […]
Shanks has won a 25-year contract with Wakefield Council worth £750m, which will see the firm build a residual waste treatment facility to process up to 230,000 tonnes a year of municipal solid waste and turn it into electricity. The contract has been funded by the UK Green Investment Bank and a host of banks including Barclays, Japan’s SMBC and Germany’s BayernLB
City AM London, p. 17

Bonuses to be paid blind to how much they are deserved
Bankers’ bonuses are again making the headlines, but they won’t be alone in expecting riches. Many of Britain’s top executives are going to get paid handsomely this year. The stock market has been rising, and that’s good news for total shareholder return, or TSR, which is made up of dividends plus share-price growth.
Independent i, p. 41

Banks have “computer says no” attitude
Britain’s largest banks privately admit they are in a “downward spiral” of poor lending decisions and have a “computer says no” attitude to small businesses, according to the former chairman of HSBC. Lord Green, now the Government’s trade minister, told a House of Lords committee that the rise of so called “casino” investment banking has seen lenders’ “de-skill” their commercial banking businesses, which has led to “extraordinary” lending decisions about small companies being made. Bank bosses “know it’s a problem”, he added. Separately yesterday the British Bankers Association (BBA) called for the establishment of an independent body to “up-hold ethical and professional standards” in UK banks.
The Daily Telegraph Business, p. 1-7

City workers mull moving
Banking growth outside the capital is driving City workers to consider moving as far afield as Edinburgh in order to get the right role, data revealed yesterday.
City AM London, p. 16

The above articles appeared on 15/01/13 reproduced with the kind permission of Kantar Media UK. All rights reserved.

Charterbridge Private Financial Planning, Independent Financial Advice, Thornbury, Bristol.