Well we all know what happens to a bank when it becomes ethical. Ask the CO OP stakeholders. Personally I do not want the RBS to make a stance and take on the world. Would the last member of staff worth their salt please turn off the light as they are leaving. My ethics are taken care of by taxation and the eventual repayment of the Governments bail out. I did not become a shareholder to take on the world and play ethics.I am in here to make money, as much as possible, in the shortest possible time and if everybody else is honest enough to admit it so are they.
Sure, and all I say is that if all the UK based banks took the message and limited the level of bonuses then the whole World would follow. The 'commercial reality' of the past few years in banking has been illustrated by the number of excessively paid people who have 'earned' their rewards by cheating. (eg: Libor) Time for change. Re Rooney, I would be surprised if any club would find the level of transfer fee MU would ask and then find another £300K a week to pay him. For that kind of money they could attract two or even three very good players. But, again, I am not happy about that level of transfer fee or player wage.
They probably have gone too far. However the commercial reality is if the going rate is not paid you loose your best staff to a competitor You use Rooney as an example and without doubt to the average man on the street he is overpaid. Personally i would not pay him in hair restorer but other clubs would be happy to match his £300k per week. We live in a capitalist world where we are judged by our occupation and salary. All I say is RBS should pay the going rate in order to keep it's best staff. Its this lets all have a dig at bankers bonuses just to jump on the politicians bandwagon that grates me.
Its not just the banks, as jings100 says excessive rewards spread across many industries. Possibly the worst is the soccer business, the prime example being a chap called Rooney. There's no problem with rewarding people for good work, its just that the extent of the rewards has got out of hand.
If absolutely every employee of the RBS was solely responsible for the past mess and all of the worlds woes and every employee was getting a bonus of at least 100% of their salary, I would entirely agree with you and, instead or rewarding them I would suggest we cart them off to the debtors prison where they would eat gruel and not be let out until the bail out fund is repaid from every penny from their earnings from the work house. And that is just about as silly as suggesting no one deserves any bonuses because "as a group" you are just a bunch of toss pots swirling about in a cesspit of your own making. Followed by I don't really care that the bank never makes any money as long as it never pays out a bonus.
At the risk of being shot down I do not have a problem with bonuses. Certain activities at the bank are profitable. Without the staff who have run these profitable sectors over the last few years the bank really would be in the s**t. If i was good at my job and my employer said I cannot pay you what you are really worth because of past mistakes of others even though you are doing a very good job I would not hang about . I am sure one of the banks competitors e.g. Barclay's would be happy to take me on. What do you guys want , a state controlled bank full of steady Eddies on a standard rate of pay with no incentive to work hard and make the bank money. If it is I am afraid you are in the wrong place. We are here to see the Bank improve, employ highly skilled staff who will turn the bank round which will ultimately increase the share price in the medium term
LONDON (Reuters) - Five of Britain's biggest investors are set to file lawsuits against Royal Bank of Scotland (LSE:RBS) next week, saying they were misled over its massive rights issue in 2008 and claiming more than 1 billion pounds back, sources said.
Legal & General (LSE:LGEN) - the biggest investor in RBS at the time of the rights issue - and Standard Life (LSE:SL.), Prudential (LSE:PRU), Aviva (AV.L) and Universities Superannuation Scheme (USS) are all expected to file claims in a London court on Wednesday, five people with knowledge of the matter told Reuters on Friday.
Former RBS boss Fred Goodwin asked shareholders to stump up 12 billion pounds in May 2008 to bolster the bank's capital position, which fell dangerously low after it bought parts of ABN Amro and lost billions on U.S. credit market assets.
Some of the lawsuits already filed against RBS over the rights issue also sue Goodwin and former chairman Tom McKillop, along with other former executives. RBS is now being run by a new team and is 81-percent owned by the government which still had to bail it out despite Goodwin's money-raising exercise.
The case is likely to take years to resolve and could cost RBS billions of pounds in compensation. It could also see Goodwin hauled into court as the bank's key witness.
RBS said it would defend the claims.
"While RBS and its former directors made some business decisions that have been criticised, this does not mean that they misled investors or acted illegally," it said.
"We believe we have strong defences to the claims that are being brought against the group and that is why we intend to defend these vigorously and to protect the interests of our shareholders including UK taxpayers."
DEADLINE FOR CLAIMS
L&G, Standard Life and Prudential's M&G Investment Management were all top 10 shareholders and invested up to 1.2 billion pounds in the rights issue, according to Reuters calculations based on holdings at the time. USS and Aviva Investors were smaller investors, but both in the top 40.
They have all appointed law firm Quinn Emmanuel.
The top shareholders have been considering their position since last year, and their decision to file lawsuits should take claims against RBS well over 4 billion pounds.
The investors and Quinn Emanuel declined to comment.
There has been a rush of investors to join several action groups set up to take action against RBS, lawyers involved in the case have told Reuters.
That is because Wednesday will mark the sixth anniversary of when RBS issued the prospectus on its rights issue, which could be seen as the deadline for claims under a statute of limitations under UK law.
Investors who spent more than 500 million pounds buying RBS shares in May 2008 have also joined the RBoS Shareholder Action Group in recent weeks, a person familiar with the group said. That group represents about 100 institutions and 12,000 retail investors.
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