US banks veto 'socialist pay' in secret talks

[IndianaGreen]

US banks veto 'socialist pay' in secret talks

By Margareta Pagano, Business Editor

Sunday, 28 February 2010

America's top bankers quashed attempts by their British counterparts to persuade the industry to bring down salaries in response to public outrage after the world's governments spent billions rescuing the system.

Chief executives from the world's banks discussed the plans at a secret dinner held at Claridge's, the London hotel, last October, at which several leading British bankers are said to have suggested that the sector should take greater responsibility for its part in the crash, and do more to reduce the vast bonuses paid to staff.

But the recommendations were met by stiff opposition from the US banks JP Morgan, Morgan Stanley and Goldman Sachs, according to one source. "Some of the US bankers were furious about attempts to reduce pay throughout the industry, arguing that any such move smacked of socialism and would be fiercely resisted," the source said on Friday. "It's not the way the Americans like to go about their business."

The bankers meet twice a year for industry talks. But following the public's growing anger at high-level bonuses despite government bail-outs, salaries were at the top of the agenda at the meeting. The source said: "There were several bankers present who believe that if the industry worked together to agree that pay levels – and bonuses – should come down it would work in the interests of all, because it would cut back overall costs at such a sensitive time. Oddly enough, even the top bankers don't like paying out so much.

"The situation is made worse by the constant merry-go-round of banks poaching staff from each other, pushing up the costs for all. This was not just about trying to respond to the public anger but a genuine attempt to reform how the industry rewards itself."

http://www.independent.co.uk/news/business/news/us-banks-veto-socialist-pay-in-secret-talks-1912827.html

[jtrockville]

1. Was AIG a party to these talks?

[notesdev]

5. More importantly, was the taxpayer a party to these talks?

They whine and bitch about "socialism" except when they're handing out bailout money in bonuses.

[Jackpine Radical]

2. Those Brits just don't get it.

LOSSES are socialized. Profits are privatized. Government bailouts are profits.

[Joanne98]

3. JP Morgan, Morgan Stanley and Goldman Sachs the trifecta of evil

[TankLV]

4. Funny how they never complained about the "socialism" of US given THEM OUR money

from the GOVERNMENT for their FAILURES...

how CONVENIENT...

[wroberts189]

7. [phone]

[Blue_Tires]

9. +1000000

[Hugin]

6. Sounds like a Union that needs busting to me...

:sarcasm: (or maybe not)

[yurbud]

8. why are they poaching if the banks are ''failing''? Maybe they aren't failing, but succeeding at

robbing us.

[IDemo]

10. Teabankers?

Socialism?? When can we expect them to complain about the elite (oops, that would be them) and parade around with misspelled signs?