RE: Pension Funds Crisis.16 Oct 2022 15:35
Not about laws it’s about responsible risk taking and that they have a BoD and NED’s in place to ensure the scheme delivers its liabilities in a low risk way. The objective is pretty much for the cash to keep pace with inflation to meet the needs of the schemes and not loose money!
Let’s take the extreme… put 100% in corporate BBB bonds, but they didn’t do it coz they understand the risks to the funds and peoples hard earned.
The failing was laziness and hubris. They were duped by some city slickers promising zero risk high returns and yet despite the millions these folk earn in wages to protect employees pensions they couldn’t be arsed to understand the detail and the risks and challenge the offer like they would any other proposal which is exactly what they are supposed to do. You can accuse the regulators of that as well! And yet they all saw the financial crisis unfold. They know about capital ratio targets for banks and yet their hubris led to laziness. It won’t be us, we are to clean, to well established. We are an institution! Yep like Barrings!
It’s no different now with the water companies, pollute, pay fine, pollute pay fine and repeat. The CEO’s on millions in pay and bonus know they can break the law and it’s cheaper to pay the fine. The regulators let them get away with it.
I wrote to the regulators and the email reply I had told me all I needed to know…hopeless!
With high pay comes high accountability, well that’s what the job ads say but in reality it’s always someone else’s fault!
They really should be locking people up for derogation of duty. If a nurse or a posty fks up they loose their jobs. Others just get bonuses and put out to pasture or a new lucrative appointment on ‘the circuit’
Look at VW blaming engineers for the emission scandal I could go on!
It’s a sickness in our culture and that’s just my view, absolutely nothing political they are all just as bad!
I think stopping the threshold on bankers bonuses is fine. Let the market decide and that’s more money, not less for the exchequer. But if there is a crisis on your watch that you should have been aware of with all your financial war games, whistle blowing exemptions and stress tests then the fate that beholds the high paid banker should be the same for all well it should actually be proportional to the chaos they have perpetuated!
Usual caveats
Trek
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