Rescued bank to pay millions in bonuses

By Simon Bowers

November 1 2008

Royal Bank of Scotland, which is being bailed out with £20bn of taxpayers’ money, has signalled it is preparing to pay bonuses to thousands of staff despite government pledges to crack down on City pay.

The bank has set aside £1.79bn to cover “staff costs” – including discretionary bonuses – at its investment banking division for the first six months of the year alone. The same division caused a £5.9bn writedown that wiped out the bank’s profits for the same period.

The government had demanded that boardroom directors at RBS should not receive bonuses this year and the chief executive, Sir Fred Goodwin, is walking away without a pay-off. But below boardroom level, RBS and other groups are preparing to pay bonuses to investment bankers who continue to generate profits.

The disclosure drew fierce criticism from Vince Cable, the Liberal Democrat Treasury spokesman.

“The government said they would attach strict conditions on bonuses and it is very clear they are doing nothing of the kind.

“The banks are just making complete monkeys of them.”

He suggested the government would not have agreed to bail out any standalone investment bank. RBS and others had become “entangled with casino-style investment banking operations”, he said.

Despite the continuing financial turmoil and widespread criticism of the bonus culture in the City, the bank is understood to believe the payments are defensible.

A source said: “I think everybody would expect [that those responsible for writedowns] would not get a bonus. But there are people who still made fairly substantial money in other product areas – you cannot just not pay them bonuses, they will just go elsewhere.” Asked about the likely bonus culture after taxpayer-funded bail-out, the source said: “If the government does end up becoming a shareholder, RBS is still a listed entity. It remains the board’s responsibility to ensure it is run commercially.”

Several US politicians have seized on an investigation by the Guardian last month which showed six Wall Street banks – Goldman Sachs, Citigroup, Morgan Stanley, JP Morgan, Merrill Lynch and Lehman Brothers – had set aside $70bn (£42.5bn) in pay and bonuses for the first nine months of the year.

Five are in line to benefit from a $700bn US taxpayer bail-out. The sixth, Lehman Brothers, has collapsed – though not without securing considerable bonus payouts for staff in the US.

Henry Waxman, chairman of the House oversight committee, wrote to chief executives of America’s nine largest banks this week asking them to hand over information about their pay and bonus plans.

In his letter Waxman cites the Guardian report and says: “Some experts have suggested that a significant percentage of [bankers’ pay] could come in year-end bonuses and that the size of the bonuses will be significantly enhanced as a result of the infusion of taxpayer funds.”

Staff costs at RBS’s investment banking division include salaries already paid in the first six months of the year, national insurance and profit-sharing contributions as well as funds earmarked for end-of-year bonuses. The sum set aside is 20% lower than the equivalent figure for the first six months of 2007.

Banking sources privately acknowledge that the sight of these bonus accruals may provoke anger. They concede the industry’s pay and bonus regime is under unprecedented strain as it fails to reflect profitability, asset writedowns or share price declines.

Source

Not really surprised to see some of  the bailout money is going to those who were in part, responsible for the down fall of the banks in the first place.

Governments should be protecting the taxpayer, not the bonues to those who messed up in the first place.

Why should we be surprised by this? Typical Government blunders are to be expected.  Either they don’t think or they don’t care about their citizens, as much as they pretend too.  This crisis was created in the US, flaunted around the world and now this  total insult to the taxpayers. As usual the rich get richer and the poor get ripped off. I am still waiting to see if and what has been investigated and what the findings are. This could be a very fraudulent set of events put into motion by a scrupulous few.

Create a Crisis, Fear and Solution. This method is as American as War or Apple Pie. This method has been used on the American people more times then one could ever imagine. Seems now they are using it around the world. Will we ever know the truth? Probably not.

This is a very informative Video, one of my Visitors gave me a while back. Very interesting indeed and an excellent Video. Be sure to take the time to watch it. You will be very enlightened by the end of it.  Could a Crisis be created? For sure.

The Money Masters – How International Bankers Gained Control of America

A Detailed Description of Management Strategy Fraud

A Detailed Description of Management Strategy Fraud

Prepared For The People by Professor Glen Chase

Glen Chase, a Professor of Systems Management, has released a third report detailing the methodical fraud that the California Department of Food and Agriculture (CDFA) Management perpetrated to attempt to create a bogus emergency eradication program for the Light Brown Apple Moth (LBAM). This third report demonstrates the fraud and deception within the program strategy that CDFA Management used and is continuing to use to qualify for $100’s of millions of dollars of emergency taxpayer funds, which were intended for real emergencies.

October 7, 2008, Santa Cruz, California

CDFA MANAGEMENT STRATEGY FRAUD REVEALED BY PROFESSOR

PROFESSOR RELEASES THIRD REPORT DETAILING THE FRAUD AND DECEPTION OF THE CDFA LBAM ERADICATION PROGRAM.

Contact: Professor Glen Chase
glenchase [at] aol.com

FRAUD AND DECEPTION: THE CDFA LBAM ERADICATION PROGRAM
A Detailed Description of Management Strategy Fraud
Prepared For The People by Professor Glen Chase

Glen Chase, a Professor of Systems Management, has released a third report detailing the methodical fraud that the California Department of Food and Agriculture (CDFA) Management perpetrated to attempt to create a bogus emergency eradication program for the Light Brown Apple Moth (LBAM). This third report demonstrates the fraud and deception within the program strategy that CDFA Management used and is continuing to use to qualify for $100’s of millions of dollars of emergency taxpayer funds, which were intended for real emergencies.

CDFA’s main method of fraud isFear and Solution.” CDFA Management creates a false fear and then comes to the rescue with a solution. The false fear is the nearly harmless moth that CDFA characterizes as the moth of mass destruction. CDFA falsifies that eradication is necessary and possible, and extorts taxpayer emergency funds for the solution. It is very much like paying the CDFA to keep the sky from falling.

The second method of CDFA fraud finds the CDFA supplying other agencies with false information so that the work of other agencies results in conclusions that support the CDFA lies. Other agencies are generally innocent, but under pressure for immediate results with limited budgets and not suspecting CDFA deception, other agencies accept the information and data that CDFA supplies them.

The third method of CDFA fraud is to load the decision making processes with people who have something to gain by the fake eradication program going forward and exclude independent and honest analysis by scientists and others who are not dependent on or under the wing of CDFA.

The fourth method is repetition of message: “Safe,” “Safe,” “Safe,” “Safe,” “Safe,”
“Just a Pheromone,” “Just a Pheromone,” “Just a Pheromone,” “Just a Pheromone.”
It is interesting to learn that there is not a single drop of natural moth pheromone in the entire bogus eradication program, and not a single scientific document that concludes that any method used by CDFA in their program is safe.

The fifth method of fraud and deception is damage control. When the CDFA is caught lying, or the false information they deliver is found to be incorrect, A.G. Kawmanura, the secretary of the CDFA, makes the statement that they will need to communicate better, implying that the lies and deception were just a misunderstanding.

Currently, the theme of fraud that the CDFA is using is a classic example of the false fear that CDFA creates. After public hearings and courts convened and found that NO DAMAGE had occurred from this moth, CDFA has rebounded with the slogan: “Once the damage is seen, its too late.” CDFA uses this slogan to make us believe that LBAM is like a locust attack on our State or the wall of a dam breaking and that we should have fixed the crack ahead of the devastation. This is all scary stuff. But there is ZERO truth and ZERO relationship of LBAM to the fear scenario that the CDFA has created in their new slogan. It is without precedent in the known history of this earth that LBAM suddenly devastates crops, forests or backyard gardens, as the CDFA management would want us to believe.

Professor Chase is furthering the call for a truly independent State investigation of CDFA and the LBAM eradication program. An independent investigation into the CDFA LBAM eradication program will quickly demonstrate the erroneous messages delivered and the unnecessary LBAM eradication program perpetrated by CDFA. “An investigation will isolate the real scientists within the CDFA from the Management because the scientists at the CDFA will unlikely commit perjury to support the fraud and deception that has been delivered by CDFA Management to California’s agriculture community, elected officials, the press and the general population.”

Professor Chase’s first report (http://www.indybay.org/newsitems/2008/07/15/18516449.php) revealed the falsehoods CDFA delivered after June 19 when courts and public pressure stopped the CDFA from aerial spraying synthetic pheromone based pesticides directly on cities. Professor Chase’s second report (http://www.indybay.org/newsitems/2008/08/19/18527832.php) revealed the fraud and misinformation delivered by CDFA from fall 2007 until June 19, 2008.

Glen Chase is a Professor of Systems Management specializing in Environmental Economics and Statistics. Glen served as an Associate Professor teaching graduate level courses in Systems Management at USC for eight years. He has taught at multiple universities in the Central Coast area, including The Naval Post Graduate School, The Monterey Institute of International Studies and Cal State University, Monterey Bay. Glen is also a Management Consultant. Currently, Professor Chase develops management systems to assist organizations that cater to the improvement of life for children with disabilities.

Background Note: the area of Systems Management within Chase’s field involves management, communication and integration of complex and often highly specialized sciences. Systems Management was not generally recognized 100 years ago, when a single scientist could be a master of all areas related to his/her work. Today, it is essential.

Source
My, My this sounds almost like the
  1. Bailout Strategy.
  2. War in Iraq Strategy.
What a familiar ring it all has. Oh I must be hallucinating, couldn’t be could it?
Bush would never dream of LIEING would he?