Skip to main content

Posts

Showing posts with the label HBOS

A nice little nest-egg

Always the first to attack workers’ pensions rights, the capitalist class have one rule for us and another for themselves.
James Crosby and Andy Hornby – two of the three former HBOS chiefs damned by a parliamentary commission for “catastrophic failures of management” – were on pension schemes that accrued benefits at twice the rate of average workers.
The “executive section” of the HBOS pension scheme allowed them to pocket 1/30th of their final salary for each year they worked at the firm, compared with 1/60th for front-line staff.Hornby, eligible to start drawing down a £240,000-a-year HBOS pension when he turns 50 in four years time.

Ged Nichols, general-secretary of the Accord union, which represents HBOS staff, said the pension arrangements were “absolutely disgusting”. He said: “Even with James Crosby reducing his pension, for a front-line member of staff, they would still have to work for more than 20 years to get what Mr Crosby and some of the other former directors get as …

The Banksters

Fred Goodwin had his knightship removed. Shall we see the same for Sir James Crosby and Lord Stevenson being stripped of their honours.
The Parliamentary Commission on Banking Standards concluded the three men, who have since moved on to new positions, should never be allowed to work in the financial sector again. The report identified bad lending (when someone cannot repay a loan), inadequate liquidity (not enough ready cash) and a lack of risk management as the key factors behind HBOS’s fall

The report said: “The primary responsibility for the downfall of HBOS should rest with Sir James Crosby, architect of the strategy that set the course for disaster, with Andy Hornby, who proved unable or unwilling to change course, and Lord Stevenson, who presided over the bank’s board from its birth to its death...Lord Stevenson, in particular, has shown himself incapable of facing the realities of what placed the bank in jeopardy.” It said the former HBOS bosses had failed to admit their mi…

Capital's apologists

Blair Jenkins, chief executive of the Yes Scotland campaign, claimed that Scotland “might very well not have had a financial crisis” if it had been an independent country. This is a ridiculous claim. Some commentators have argued that, if Scotland had been independent, the banks would have been better regulated. The Scottish equivalent of the FSA would have stopped them from pursuing self-destructive courses, barred them from ballooning their balance sheets with dodgy loans and toxic assets, and insisted on higher capital ratios. There’s absolutely no reason to believe that it would have been any different.

The idea that Scotland’s banks – RBS and HBOS, whose combined assets were 21 times Scotland’s gross domestic product at the time of their near collapse (for the sake of comparison, Irish banks’ assets were 4.4 times Irish GDP at point of their October 2008 collapse, and Icelandic banks‘ assets were 9.8 times times Icelandic GDP) – would have been better-regulated if Scotland had b…

workers shares - a share in losses

For Bank of Scotland and Royal Bank of Scotland workers, the chance to buy discounted shares in their employer seemed a no-lose deal. Schemes such as the Sharekicker plan at HBOS, which allowed employees to buy the bank’s shares with their bonuses and get 50 per cent more free shares after three years.

In December 2007, the HBOS share price was 741.5p. A year later, after its takeover by Lloyds, it had plunged by more than 90 per cent to 69p, giving thousands of employees who had taken up the Sharekicker plan not only their jobs to worry about, but their savings.

Many staff were confident of prosperity-laden future of their employer and invested much of their cash back into the very company they worked for. The tragedy is that when things went pear-shaped, many lost both their jobs and their savings.

The Deputy Prime Minister talked of a democratic share ownership culture. A lot of bank workers can be forgiven for feeling cynical towards Nick Clegg’s proposal for employees to have a uni…

Hypocrisy by the banks

I read that David Lloyd, 62, was told he had terminal lung cancer in January 2006, his wife, Annette Edwards, contacted their bank, the Halifax, to let them know of his predicament and that he would no longer be able to work. They applied for a payout on an insurance policy, and for state benefits, but while they waited for the money to arrive they went overdrawn.
The bank and its agents telephoned the couple 762 times over seven months in what they say is aggressive pursuit of the debt . Their daughter, Stefanie Moore, 29, received 60 to 100 phone calls and two text messages .

The couple feel dehumanised .

Yes that what capitalism does to people . Socialist Courier wonders if the banks now in debt , begging for government bail-outs will ever be treated in such a shameles and heartless manner to demand repayment

Privatise Profits - Socialise Losses

BANK OF England governor Mervyn King used his now-famous meeting with the chief executives of the "big five" UK banks last Thursday to admonish them for increasing shareholder dividends.

On February 27, HBOS hiked its dividend by 18% to 48.9p meaning the bank offers a yield of 6.9%. It also lowered the targets under which directors would receive payouts on its executive incentive schemes. Previously directors only received bonuses under the scheme should the bank's shares outperform a basket of UK banks by 3%. Under the new rules, HBOS only needs to be 1.5% above rivals to trigger pay-outs.

Colin McLean, chief executive of SVM Asset Management said: "It just seems wrong that bankers are looking for support and essentially public money at a time when both dividends and executive pay are not only high but have also just been raised."

As we previously reported annual reports from RBS and HBOS show that Sir Fred Goodwin's remuneration totalled £4.19 million in 200…

All the way to the bank

The Times tells us that :-

Andy Hornby, HBOS's chief executive, took home a £1.9 million pay packet for the year, including an annual bonus of £449,000.

Peter Cummings, chief executive of HBOS's corporate business, was paid £2.6 million, after picking up a £300,000 bonus from the executive bonus scheme and a further £1.3 million from a separate bonus plan run by the corporate division.

Benny Higgins, who was ousted last year as head of HBOS's retail banking business, was paid £2.3 million, including his full annual salary and benefits of £900,000 and the same amount again as a payout.

Dennis Stevenson, the chairman, was paid £821,000, including £113,000 in benefits. Jo Dawson and Dan Watkins, the new joint heads of the retail business, were paid £1 million and £329,000 respectively.