Saturday, 1 November 2008

'Making monkeys of us all'

. A couple of weeks ago on this blog I highlighted the issue of taxpayers money being used to fund what most would say are rather undeserved bonuses. Vince Cables comments about the Royal Bank of Scotland's plans to set aside £1.79bn to cover staff costs are thus very welcome indeed. It is worth quoting this passage from The Guardian at length, just in case anybody should have any doubts about the justification for these 'staff costs;

"The bank has set aside £1.79bn to cover "staff costs" - including discretionary bonuses - at its investment banking division for the first six months of the year alone. The same division caused a £5.9bn writedown that wiped out the bank's profits for the same period."

Hardly a stellar performance is it?? You'd think somebody who had previously criticised "banks who take excessive and irresponsible risks" and felt that they should be "punished by going out of business" would at least be happy that we were taking a stand against such dismal failure being rewarded with pots of taxpayers cash. You'd think so but you would be wrong. Charlotte Gore says;

"I hate to say this but this relentless obsession with finding the 'populist' angle - at some point it's been decided that being 'against bonuses' is our 'message' - is going to undermine our credibility."

Would that be the kind of credibility that comes with espousing a politically consistent position?? If so then images of glass houses and stones come into mind....

No comments: