Time for revolution! (12)

And our lot give us this >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>



By Laura Noonan
Tuesday April 03 2012
FINANCE Minister Michael Noonan has cleared the way for bailed-out banks to begin paying bonuses to their top executives as early as next year.

All state-supported banks were banned from paying bonuses soon after they were rescued.

But new rules on how the Government oversees state- supported banks pave the way for "incentive arrangements" at AIB, Permanent TSB and Irish Bank Resolution Corporation, formerly Anglo.

The rules stress that all the "incentives" have to be "closely related" to the performance of executives and must be linked to the achievement of the banks' business plans.

Previously, all incentive payments were explicitly banned. This ban could stay in place until mid-2013, under the terms of last year's bank recapitalisations, sources said.

But the latest document establishes, at least in principle, that bailed-out banks can pay bonuses to their directors and senior executives while the banks are still dependent on the State.

"The minister will require that any incentive agreements for directors and senior executives are closely related to their performance, measured by the achievement of relevant targets -- such targets having regard to the achievement of the business plan," the new guidelines for AIB, IL&P and IBRC say.

Bank of Ireland is not covered by the latest instalment since it is only 15pc owned by the State, and the Government will not monitor its activities as closely as the other banks'.

BOI is banned from paying bonuses until June 2013, the Irish Independent understands.

A spokesman for the Department of Finance last night insisted there had been "no change" in its policy on bonuses, and stressed that the new "relationships frameworks" with the banks did not override existing agreements with banks that "prohibit" bonuses.

He refused to disclose details of those agreements or reveal how for long bonuses are prohibited. And he failed to explain why details about the conditions for incentive payments are included in the relationship frameworks if it is never foreseen that the banks would be allowed to pay bonuses.

Irish Bank Resolution Corporation (formerly Anglo Irish Bank) last night said it "does not currently operate incentive arrangements and there are no plans for such arrangements". Irish Life & Permanent also said it had "no plans" to propose incentive schemes.

AIB and BoI declined to comment, but last year BoI told shareholders it expected to be prohibited from offering bonuses until June 2013.

Future bonuses are likely to be well below the multi-million euro windfalls enjoyed by banking bosses in the past, but any payments would come on top of hefty salaries.

IBRC chief executive Mike Aynsley got a total package of €866,000 last year. His bank's annual report shows its 10 top managers, including Mr Aynsley, shared "salaries and short term benefits" of €6m in 2011 -- implying average payments of well over €500,000.

AIB chief executive David Duffy is on a basic salary of €500,000, plus pension contribution of €125,000, while Bank of Ireland boss Richie Boucher got a salary of €623,000 last year, plus pension of €174,000 and other payments of €34,000.

The Fianna Fail government at one point considered plans to introduce a 90pc 'bankers bonus' tax when it appeared that AIB would have to push ahead with a €40m bonus payment that was ultimately blocked by the late Finance Minister Brian Lenihan.

- Laura Noonan

Irish Independent.

Well hats off to Iceland! Can ye imagine what would happen here if we were to follow their example?!

At the height of their crisis, the ratio of debt to incomes was 240%...wonder what our ratio is at the mo?

The Icelandic banks have forgiven loans to the value of 13% of GDP.......
with the help of an agreement between the banks and the government to forgive debt exceeding 110% of home values.

SO debt forgiveness can be done and does work.... and its two fingers up to the "moral hazard" spin.

When are we going to realise that the only difference between our present situation and the Titanic is that we taking a bit longer to sink.....?

..and it seems that iceland is in aposition to return some of the monies due ....

great article sharmini
and a a great example of what should have been done here
pity were still in the race to the bottom

So youre in favour of maintaining the status quo?....whereas iceland has overhauled its financial systems...has 200 people , Incl a former prime minister in their sights...with a view to criminal prosecution, have allieviated the plight of 25% of their population with the 110% scheme....AND are starting to pay back councils and charities in the Uk who were burned...and looking towards a fairer future with justice been done..and the likelihood of a similar collapse again, no more than a ghostly shadow from the past.

And what have we here? A nation crippled by debt.....with no disposable income for many..so no money to spend or save...and the banks continue as before....unfettered....and as arrogant as ever.

The essential point for me is that Iceland put its own people first. And if a country wont stand up for its own people than who else will?
Yes, ordinary people were "burned" but the responsiblilty for that lies with their financial advisors and institutions, who in my opinion got greedy.

All investments carry risks...thats the name of the game....you win, you make a profit, you lose then you lose....

The "ordinary " people here are being burned one way or another.....the difference for us is that there have been no credible attempts to rectify the corruption, regulate the systems, no sense of justice or accountabilty....and no end in sight....