Bank of England fires back at Europe’s bid to stamp on bonuses October 16, 2014 Bankers need bonuses to create incentives to behave well, and the EU’s efforts to stamp them out are harming this goal, the Bank of England’s Andrew Bailey said last night. Stepping up the prudential regulation authority’s campaign against the bonus cap, Bailey argued that the cap was a “bad policy”. He told the City of [...]
Brussels claims British banks’ role-based allowances are in breach of EU bonus cap rules October 15, 2014 British banks face another nine months of rows with the European authorities and could end up in a fierce legal battle, after the European Banking Authority (EBA) yesterday claimed they were in breach of new EU rules on bonuses. The UK authorities back the banks’ role-based allowances, which are a new element of pay. [...]
Freud sorry for disabled wage row comments October 15, 2014 LORD Freud, a government minister in the department of work and pensions, was forced to apologise yesterday for appearing to suggest that disabled people were “not worth” the full £6.50 an hour minimum wage. Highlighting Freud’s comments at Prime Minister’s Question Time yesterday, Opposition leader Ed Miliband called for the former Labour adviser to consider [...]
Brussels’ bank bonus bashing is an absurd game of whack-a-mole – Bottom Line October 15, 2014 Bankers are not stupid. This is hardly a controversial view in this newspaper, but it is a point which has been messily and repeatedly missed by EU regulators. When the bonus cap came in it took next to no time for the banks to get around it. Now the hammer of the regulators is slowly [...]
BBA dismisses new crackdown on bankers’ bonuses as “counterintuitive” October 15, 2014 The British Bankers Association (BBA) has dismissed moves by a European body to curb the use of fixed allowances as an alternative to traditional bonuses as “counterintuitive”. Today, banks were hit with the news that more stringent checks could be introduced to the pay of senior staff after an investigation found that several institutions [...]
Sluggish wage growth gives Bank of England a tough choice over interest rates October 15, 2014 Unemployment rate: down. Wages: up a tiny bit. How does this affect the Bank of England's plans for interest rates? At six per cent, according to the Office of National Statistics (ONS), the unemployment rate is looking healthier by the month. It’s comparable to the US rate (5.9 per cent) and far lower [...]
UK unemployment at lowest rate since the recession October 15, 2014 The UK labour market is looking stronger than expected, with figures out this morning showing an above-consensus drop in unemployment. According to the Office for National Statistics, the unemployment rate reached six per cent between June and August, the lowest rate since late 2008. While analysts were expecting a drop from the previous [...]
Budget deficit reduction efforts hit by low wage growth this year October 13, 2014 Income tax revenue is falling below expectations this year due to sluggish wage growth, the Office for Budget Responsibility (OBR) said yesterday, warning it will hit efforts to close the budget deficit. The economy is expanding strongly and creating jobs at a record pace, which should be good for the government’s finances. Unemployment stands at [...]
Chuka Umunna: Labour will cut tax for firms who lift wages October 13, 2014 Firms who pay their low-paid staff a higher wage should get tax breaks, Labour’s Chuka Umunna said yesterday, ahead of a debate in the House of Commons over the minimum wage. The shadow business secretary will call for an £8 per hour minimum wage, a new mandate for the Low Pay Commission (LPC) to push [...]
Earnings season: Morgan Stanley bankers set for bigger bonuses, while Citigroup and JP Morgan traders face drop October 12, 2014 Third quarter earnings season is here and the fun on Wall Street is about to begin. Morgan Stanley's bankers look set for the biggest bonus payouts on Wall Street this year, while JP Morgan and Citigroup bonus traders may be less fortunate. According to estimates seen by Bloomberg, Morgan Stanley "probably had the biggest increase [...]