I guess the recession has no shortage of fall guys. Bob Diamond, who has largely been held as one of the good guys in this mess, is under attack by Lord Peter Mandelson, British Secretary of State. I'm thinking it's a political move, but it's definitely making the papers in the U.K. He more or less posits that Diamond's compensation package is an affront to humanity.
The Business Secretary branded Barclays Capital president Bob Diamond "the unacceptable face of banking", saying he had earned tens of millions of pounds by "dealmaking and shuffling paper around".Meanwhile, a political ally of Prime Minister Gordon Brown - former Paymaster General Geoffrey Robinson - said there was a sense of "moral dismay" among voters at banks continuing to pay massive bonuses to executives after the sector had to be bailed out with taxpayers' money.
Again we come down to the "value-add" question, and again banking has a hard time justifying the pay on the terms of value added to the economy. Whether or not Diamond earned £63 million, or £6.3 million for that matter, Barclays is struggling to pinpoint exactly what he did to justify the comp.
I'm assuming the value derived from the Lehman acquisition is worth something? Don't know how much though.
Mandelson is pathetic. He has literally zero credibility when accounting for the numerous scandals surrounding him and his constant need to make idiotic comments.
The British people stopped caring what Mandelson thought long long ago.
Don't believe you. Especially after that Llyod B false flag op on Friday.
False flag op? Easy there, ZeroHedge.
This is one of the many reasons I hate politicians. Every couple of years some politician that is either not in favor or not famous at all attacks someone who is legitimately a good guy. It is now in vogue to attack Wall Street (I know this is England) people just like in the late 80's it was cool to attack heavy metal musicians. This is just the latest event in a string of attacks by politicians trying to score cheap points with their constituents.
The Brits have really succumbed to public pressure. While the populous hates "wall street" in America, there are intelligent objective people who prevent fear from ruling. In the UK over regulation has already started.
RBS has been eaten alive and literally retracted bonus figures after public outcry. I don't care if the gov't owns equity in your company. That equity is going to bought out at a profit.
That's because Britain is run by incompetent communists.
Sad but true. Stay away if possible.
I'm sure him being American has a lot to do with him being singled as well.
I just don't get why nobody seems to learn from history....over regulation has destroyed super powers, if England and America think they are exempt from that truth they are wrong.
Of course the media doesn't help either
Cap on Executive compensation has been slow in Europe, this may be the beginning of a political push for these guys.
IMO, The time to pass these kinds of things has gone by and I don't see anything really happening. They are just making a big fuss.
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