Bank of England boss squirms over bonuses in failing banks at Select Committee

Andrew Bailey and one of his Deputies are grilled in the Treasury Select Committee over the bonus culture at failing banks like Silicon Valley Bank and Credit Suisse.
This is Andrea Leadsom's redemption arc.
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[@peterkelly6232]

They get paid to do their jobs and no bonuses should come into it as they are paid too much in the first place just pure greed of the Bankers

[@alien4422]

A lot of these will be the same people who should have been jailed in 2008.

[@grahamkelly5846]

Well said 😊

[@sharongillesp]

Exactly! Why are these types of over paid arses getting bonuses AT ALL. Even then, they didn’t even do their jobs, and scheming instead. I think it was Finland after the 2008 financial crisis that sent bankers to jail. I don’t know of any other country that did the same.

[@KittyVentura]

Bankers getting bonuses for screwing up, in any other normal job they'd get fired and the company would go bust.

[@sharongillesp]

Unfortunately, they’ve got people’s money as hostages.

[@rahmanesa7063]

capitalism 101

[@fritzhenning1]

Politicians seem to be rewarded even if they fail. Bunter is a prime example

[@bigpants6121]

Bunter has now earned £1m+ for failing. Bullingdon Boys always do well!!

[@danocnl]

Same applies to all the industries that the government have privatised. The executives are raking in huge bonuses despite the complete failure to deliver. Take Royal Mail as an example.

[@audreymcgready4329]

T May. Truss.

[@bigpants6121]

@@danocnl Dont forget the Water Companies that pour out raw sewage.

[@alvindimes4729]

​@@bigpants6121 Totally correct, these services need to taken back into Public Ownership.

[@robertmaslin3844]

Bonuses should not be given for failure.

[@alexkelly6648]

amen to that !

[@paweszczepanski6738]

from their perspective this isn't a failure

[@alien4422]

@@paweszczepanski6738 Not when the taxpayer is there to bail them out. Hence socialism for the rich and capitalism for the poor.

[@dondoodat]

In 2008 bankers still got their bonuses as the banks crashed due to their catastrophic failure around them and the public bailed them out.

[@sarangistudent8614]

@@dondoodat yep and regulations on their bonuses were bought in after that. Regulations which Leadsom has now voted to remove, yet she complains about it here 🤦🏽

[@robertwinslade3104]

Greed in the banking industry needs to be put in check

[@rubberduck3788]

Didn't Liz Truss remove the cap on bankers bonuses? The greed will only get worse and the Conservatives are very unlikely to ever reinstate that cap any time soon.

[@danocnl]

The government are also complicit as long as they keep bailing them out with tax payer's money.

[@audreymcgready4329]

@@danocnl That means the Government are not bailing them out. We are again. While the Government lift the cap.

[@lw1zfog]

City of London Crown Corporation mafioso

[@rahmanesa7063]

more regulation goes against free market principle

[@ctid107]

I don't usually have much time for Leadsom but fair play to her here.

[@sighfly2928]

It’s all a facade IMO. What’s the point of this? Is there any DIRECT baring on policy because of this? Or is it simple recommendations etc.

[@sighfly2928]

Seems like it’s all curtain dressing, just so they look like they’re the slightest bit competent.

[@blatherskite3009]

This comment by Vince Cable, following the previous banking collapse, summed it up for me. He said the banks' M.O. was to "privatise the profits; nationalise the losses."

[@ansfridaeyowulfsdottir8095]

This comment should be pinned. {:o:O:}

[@cmeonthemove]

If Government ministers are concerned about failing banks paying bonuses, maybe they should stop bailing out failing banks with taxpayers funds, and voting through increased bonuses for bankers...

[@senseisteve3011]

This is applicable to all the national public services that have been privatised. Large publicly listed companies main priorities are to provide value to their shareholders, their real customers. Not the end user

[@Alex-cw3rz]

Didn't her party just remove the cap on bankers bonuses?

[@jsquire5pa]

I think she’s arguing against failed banks getting bonuses

[@petermoxham2625]

Why has her government lifted the limit on the amount that banks can pay their bankers in bonuses to a level much higher than if we were still a member of the EU?

[@MrHighRaw]

It's a perk of Brexit. To the bankers.

[@saoirsehaslonglegs2313]

​​@@MrHighRaw ffs.im so angry at the corporate corruption & captalism criminality.

[@topnotchpiperdad]

Because they are all Rishi Rattlesnakes pals.

[@sharongillesp]

If they’ve managed to strictly maintain minimum wages and how much teachers, nurses and others get paid, they need to do the same for EVERYONE in the financial sector. NO BONUSES…….PERIOD.

[@crunchyfrog555]

Because Tories, because rich donors.

[@Kodakcompactdisc]

I must get into the banking, it seems you can’t lose.

[@Alex-cw3rz]

It's typical of the richest in society they say they take all the risk and give themselves bonuses for failure, while workers are told they are greedy for wanting pay that matches their productivity and they should be lucky to get a zeros hour contract.

[@richardhowlett4097]

Spot on there. Proper workers who actually earn their pay are not deserving of bonuses, they are beneath the richest crooks.

[@dav3bassman]

Bang on. Key workers are called greedy for wanting a pay rise with inflation for the first time in 13 years following weekly applause throughout a pandemic but bankers wanting extra money for gross negligence is fine, and we've removed the cap on banker's bonuses as well. Wow, the Tories are just taking us all for idiots now and what evidence do we have to suggest they're wrong? We democratically voted Boris ffs...

[@barneymcgroo5805]

Vive la revolution!

[@rahmanesa7063]

capitalism 101

[@Aconight]

Andrea Leadsom, MP: "In what other sector in the UK, if your Boss fails, if your Business fails, do you then get a bonus." Obvious missed answer: "Rail, Mail, Energy Companies... essentially any formerly nationalised sector..."

[@DW-dd4iw]

Reward for failure is very common in all big businesses and institutions.

[@welshskies]

That's why our utilities should NOT have been privatised!

[@hellsbells7271]

Yes they will still get their humongous bonuses, these men ooze greed right out of their bones. Absolutely despicable.

[@alexritchie4586]

Leadsom: "Why are bankers getting huge bonuses?!" Also Leadsom: * voted to remove the bankers' bonus cap *

[@leeshepherd6512]

She’s not the sharpest knife

[@cozimo64]

Not even a conservative but you have me defending Leadsom ffs. She's not arguing against the concept of bankers bonuses, she's arguing *failed* bankers shouldn't be rewarded with bonuses.

[@alexritchie4586]

@@cozimo64 Yeah, of course. All Tories say this. They won't win many plaudits from the peanut gallery by loudly declaring that bankers should get bonuses for merely existing. Yet when pen comes to paper their actions betray them. Leadsom doesn't give a shit about bonuses for poor performance. If she did she wouldn't toe the line to continuously make them both easier to award and less regulated when they are. You're being hoodwinked by political theatre, Comrade.

[@GoldnDusty]

@@cozimo64 Right, so regulation is a boon. Capping bonuses prevents extortionate bonuses from being doled out while you try and regulate the circumstances in which they can be given. She’s essentially removed the cap while the water’s still pumping, and asking why she’s soaking wet. Also, don’t defend Leadsom. If she stopped-clocks her way into a sensible thought, you can likely trace her logic back to the most selfish and bass ackwards motivation, quite easily.

[@JSmith19858]

Why would the boss of the BoE squirm over bonuses in banks? Leadsom's party is the one which has removed the cap on bonuses, not the BoE. This is all driven by government policy that she has a hand in setting.

[@jantyszka1036]

To make the rich work harder you pay them more; to make the poor work harder you pay them less.

[@richardhowlett4097]

You mean the rich can work harder? That's unbelievable, the hardest thing they do is lift a telephone from its cradle.

[@leerobinson8709]

@@richardhowlett4097 I believe the saying is " to motivate the rich, pay them more etc" In other words, scheme the shit out of the system...

[@xtrailz]

Bankers never fail. They just pop up again in a different job earning the same kind of money.

[@sparkymark68]

Andrea Leadsom almost always voted against a banker’s bonus tax.

[@yutyuiiu]

her reasoning is circular and idiotic. because we have strong regulations ensuring SVB UK did not become ensnared in the SVB US collapse, and was sold to HSBC UK as a result. the employee' should be penalized for what would have happened if the we did not have the regs. The UK regs also hold banker bonuses for 3 years to ensure if there was a failure that is uncovered the bonuses will not be paid.

[@mypointofview1111]

Isn't she married to a banker?

[@bigpants6121]

Bankers again having a laugh at our expense.

[@djmarti7773]

It's greed and nothing more. They are trying to say they're above everyone else even if they are failures..

[@jellslixcy6168]

I think you’ve misunderstood who the panel is?

[@ohnoitisnt]

In most private companies, when the finances start to dry up, most buisness owners decide to have the pay cut start from the top, and work down. You HAVE to keep the frontliners going so that your company can keep generating money. Dishing out bonuses as the banks run out of (our) money seems like the complete opposite...

[@davelou1995]

That’s not true in the private businesses I’ve had the misfortune to work for. It always starts at the bottom - when frontline staff leave they are replaced by cheaper models; senior management who failed in their roles are often moved up and sometimes out of the local business and into the national or international sector of that private company.

[@acolli777]

Quite a few of the board of SVB sold a % of their shares weeks before it collapsed (one cashed in some stock options then sold them) apparently

[@Alex-cw3rz]

I think Andrea Leadsom's yes or no questions are utterly silly, pointless and not mentioning hypocritical, but the rest was good

[@Peter-Ac]

Get her to answer yes or no- "is brexit a roaring success?"

[@evolassunglasses4673]

She's getting closer to the problem than most.

[@evolassunglasses4673]

@@Peter-Ac it's a long term process not a day. Corbyn could of set out an alternative direction. He was anti EU all his political life just like his hero Tony Benn. He became leader suddenly flipped flopped and crashed in the Old Labour Leave seats

[@evolassunglasses4673]

@@TheBrianBurrows she did a good job here.

[@richie5um]

Intended for political point-scoring only, not for actual fact-finding.

[@davidmyers4056]

How can politicians grill bankers. When they are in their pockets. Politicians are all hoping one of their 5 jobs will be in banking. Yet again lots of words no action. Whats more they did not answer the question. Who ever teaches MPS how to lie and avoid, have been teaching theses people. Stop bankers bonuses now.

[@neoquest2012]

These Snakes,Thieves and Liars (MPs & WBankers) Working together like this are The Cancer that needs removing from influence and Power…

[@sharongillesp]

One thing these people learn is to debate arguments even if they KNOW they are wrong and essentially lying.

[@petermoxham2625]

Who else gets a bonus if they fail? Ex Tory Prime ministers, ex Tory ministers, ex Tory MP's, ex Tory local councilors, to name just a few.

[@dondoodat]

Andrew Bailey, head of the Bank of England, still refuses to acknowledge the damage that Brexit is causing the UK. So I don't think we can accept his opinion on very much.

[@evolassunglasses4673]

That/ Brexit is a complete sideshow. The West is bankrupt, propped up by money printing and hollowed out by decades of open borders Globalisation.

[@JA-ez4to]

The general attitude I pick up from all these select committee interviews are “ Rules are for them, not for us”

[@jellslixcy6168]

What? I’d watch it again. The Bank of England reps are setting the rules and enforcing them? The rules apply to all UK banks (not UK branches of international banks - that was the crux of the discussion).

[@monkeytennis8861]

Erm, railways, Royal Mail, NHS, civil service (top dogs get huge bonuses)... to name a few

[@tomhermens7698]

Trying hard to keep the system- however rotten - in place. Dispicable. What about the people that lost money. Ah yes, tough I hear you say.

[@roc7880]

no failed company in industry gives bonuses when collapse

[@topnotchpiperdad]

Failure has always been rewarded in the U.K.,as far as banks go.

[@gramsci279hegemony8]

The contempt of the (w)bankers is unbelievable telling the chair which questions they are going to answer and which not. When are supposed select committees going to have consequences.

[@kevingeoffreydunn9864]

I would say that the bankers are no different to mps one word corruption.

[@nimesh0775]

Leadsom says all this, but she's the first to vote along with her Tory mates to not put any restrictions on bankers' bonuses.

[@evolassunglasses4673]

She is doing a very good job here.

[@nickridic99]

Where would you get paid a bonus for failure? Two words - Royal Mail.

[@rupertharvey4506]

Banks are running the show.

[@lw1zfog]

Freemasonic City of London Crown Corporation mafioso runs it all

[@scottandrewhorne4655]

Big trouble is heading the way of so many of these souless CORRUPT people on their D days.

[@WestfaliaStuff]

Man, those bankers got smug and self assured over the past 20 years.

[@mariusb5150]

We've hadn't had this discussion yet because as long as there is a Tory government there will be absolutely no need for any accountancy for whatever ...

[@alfalfaomega9290]

It's time for Banker's to start looking at long jail time and lengths of rope.

[@jellslixcy6168]

Bring back capital punishment? Is that what you’re referring to by “length of rope”? Or are you suggesting that they should commit suicide? Probably not very nice either way - are you some kind of gammon faced Tory?

[@Scotland2306]

Too many bonus chasers and brown envelope chasers.

[@PDVism]

All of them, in any country, are always the same. They have to be paid lots because of their expertise and because of being on par with other industries so you get the best of the best of the best! BUT if something goes wrong they have no clue why it went wrong anymore then anyone else, didn't see it coming AND still deserve high pay and lots of bonus because actually being paid based on performance and the well being of the company is not something that is applicable to them. And then they get in their company provided limo, to go to the golf club (membership paid by the company) to have a 5 courses meal (tab picked up by the company) and play a few rounds of golf with some mates and doing this all under the guise of working. Where as the stock boy will get fired, and criminally charged with theft, if he should happen to forget to take the company provided pencil out of his pocket before punching out at the end of his shift.

[@justsayen2024]

It's a systemic culture of greed that's led to this risk-taking

[@Alex-cw3rz]

If they fail they should have anti-bonuses where they give money to the government for incompetence

[@jellslixcy6168]

Only if tax payer money is involved presumably? In SVB uk - no tax payer money. Which is why Leadsom asked at one point about those who are paying for the bonuses (customers of SVB uk)

[@nedludd7622]

Go back 15 or so years and see John Bird and John Fortune explain the financial sector.

[@jimb9063]

Superb pair. Always loved how they portrayed the incredulity of the characters they played, in all their sketches. It's as if they couldn't even imagine things being run differently, and couldn't conceive why anyone has a problem with the status quo. It's funny because it's true.

[@fastestmilkman3840]

Leadsom asked about bonuses, how about our gas, electricity, public transport bosses?? How about MP getting a 2nd job and claiming everything left right and centre? Unfortunately, it looks like we are living in a "have" and "have not" world unless people in the UK act similarly to the French then we, normal people, will just going to be milk to the bone until we are too sick to work and die.

[@spaghettieast]

There is a lot of this arse tearing going on recently but nobody really being taken to task, fired or jailed. The humiliation is probably worth it compared to their bonus 🎉

[@justhetruth]

Today Bank of England tells us just to accept the current crisis and not expect or request a matched cost of living increase, these rules do not apply to the suits on display here though.

[@indricotherium4802]

Is there a securer job anywhere than batting for the super rich?

[@jeffsuter344]

Banks can do what they like with NO consequences. Same old - same old.

[@IAt0m1xI]

So if I destroy the uk's bank I will get a bonus?? Damn where do I sign up?????

[@sjhhej]

I didn't see much "squirming" on the part of the banksters there. More "sneering contempt". Banksters get paid no matter what they do.

[@PiperStart]

Sam Wood's indirect answer shows duplicity at the least, and outright greed and avarice at most.

[@huwzebediahthomas9193]

Listening to these three fellas, the Three Stooges made more sense in 1940's cinema.

[@garriejackson9551]

Ironic that the Tory party, which she is a mp for, have lifted the cap on bankers bonuses

[@philmckay9973]

Bankers need to start paying for their mistakes

[@AWeaselful1]

You’ve got to ask what a bonus is actually for. At this point isn’t it just salary?

[@ciarand2823]

It's more tax efficient to receive it as a "bonus", another example of failing by Andreas party who only tax the little people who don't have much

[@BsktImp]

AL: "In what other sector in the UK if your boss fails, if your business fails do you then get a bonus?" Answer: Member of Parliament, specifically in government. If you're not returned as an MP you get to sit on numerous corporate boards or be hired in consultancy roles, remunerated at disgusting rates for very little actual work!

[@gavelkynde4837]

It's really not a bonus if it's locked in - how can it be a 'bonus' at all? Well done: firm's failed - here's a big fat reward for that then. Legally all bonus funds should go straight to creditors.

[@musopaul5407]

Bailey was terrible at regulating the financial sector when he was head of the FCA, it's hardly surprising that he's an apologist now. That said, Leadsom is wrong that SVB collapsed because of "risk-taking". In fact, it collapsed because they were trying to play it safe by meeting their capital requirements with extremely un-risky investments like Bonds. When there was a run on their bank, which I don't think was their fault, they couldn't sell their bonds without making a loss because interest rates had gone up.

[@Me0wish]

So the exact definition of high risk then. Investing in "safe" bonds during a period of volatile interest rate hikes does not sound like the safe option to me

[@evolassunglasses4673]

He's completely out of his depth.

[@musopaul5407]

@@Me0wish Everything is relative. It's a lot less risky than derivatives or futures, and if they bought the bonds before rates began to rise last year, it was a petty safe bet. No financial transaction is without risk, including buying a house - you just do your best to mitigate. Remember, what happened to SVB is almost exactly what happened to UK pension funds after Kwarteng's disastrous budget, where Bailey bailed them out. Would you consider their purchases risky, too?

[@victoriaselwyn8781]

Worms. They are worms. Remember when the head of the Bank of England wanted you to volunteer for lower wages to help out the economy? But he's fine with bankers bankrolling on a loss.

[@maggietaylor9475]

Why are all these bankers on this clip so fecking smug 🤔

[@lifeonanotherplanet]

Why would bankers create rules that limit their remuneration? It's up to parliament to legislate on banking regulation. Once again, Leadsom and co are being disingenuous in pretending it's not the result of government (in)action. If Truss had had her way, existing policy would have been loosened further.

[@alien4422]

Take all of their assets. They need to pay for their failings.

[@jellslixcy6168]

The problem is that they don’t have any assets left.

[@huwzebediahthomas9193]

The ring fence has small holes, apparently, they said this morning. Incredible waffling that was.

[@daxhausentraveller8488]

Do they think we are that stupid . The main reason we are all in this position is because we use a Fractional Reserve Banking system , we are all in trouble due to this fact . And I think the answer to her question question should be no it’s not fair . Come on and these people run the banking system . 😳

[@DH-bg1qo]

You can’t just reverse the entire fractional reverse system overnight. Society would enter meltdown

[@daxhausentraveller8488]

@@DH-bg1qo If we don’t start challenging things , then we can’t complain when melt downs happen . Do you think these meltdowns happen by chance ? . If you look at past historical crashes they have happened , ALL, no exceptions been due to the Banks themselves . The only other people that do well out of crashes are the already wealthy 1% of our society . Doing nothing is not really an option in my view .

[@crunchyfrog555]

The problem is not just the bonuses themselves. It's the whole set up - they get paid and incentivised to gamble MORE with monety that isn't theirs. Gamble well, and they get MORE money, lose and they still get the money and we lose.

[@3D_Printing]

0:47 In the Houses of Parliament, is the answer to that question

[@proffessorclueless]

According to these clowns if you crash a bank it might be appropriate to have a bonus. The only conclusion is they think greed is good. Get as much as you can as quick as you can and stuff everyone else. The only lesson from 2008 is the public accepted that they would pay in taxes to bail out the banks so why not take as much as possible from them.

[@jellslixcy6168]

That’s the opposite of what they said. They said if the checks on the deferred bonuses found mistakes/ too much risk / irresponsible carelessness (no doubt these things are defined) the bonuses for SVB uk would not be paid or retained if already paid. And if the bonuses are in stock- worthless anyway

[@cobbler40]

They know they will be bailed out

[@brianevans2819]

This is how obscene they are they couldn’t even answer, NO they should not pay Bonuses.

[@mariewhatley455]

What a the point of this committee when nothing gets done about those crooks?

[@davewebster6945]

Surely the bonuses paid to these people increase the likelyhood of them making high risk investment decisions in order to get those bonuses 🤔. Courting disaster as a matter of course leads directly to disaster eventually and they dont care because they never get to face the music, they still get theyre bonuses and the cost is picked up by the government and passed on to the general public to bail out via charges and taxes. Its a legalised criminal get rich enterprise scheme with no penalties at all for those running it 😡.

[@cobbler40]

Next potential disaster is the private pension business. Payouts guaranteed with LVI. We saw with Kwarteng how vulnerable it is.

[@testman9541]

That was fun when he said that Ensuring that the issue was not systemic actually triggere more selling on Credit Suisse 🤦 Arsonist firemen 🎉

[@BrazenBull91]

Greed begets greed....

[@jameshblack]

Bankers like politicians don’t want to answer any questions , bugger up everything for everyone else but they get payed and then get expenses and bonuses ,

[@highmillpickering2470]

What about the private water companies and train companies. They seem to reward abject failure rather generously

[@DAVJULART]

When the regulator seeks to protect the regulated I'm minded to question the regulation!

[@davecap2641]

The tory government removed the limit on bankers bonus.

[@milesgreen9705]

Current governor overseen huge bankruptcies. Extraodinary behaviour.

[@danmayberry1185]

Shareholder greed crashed SVB. And the greed continues.

[@b.2221]

That Bank of England boss is a joke.

[@trevorharris9582]

A tory MP who held senior places in the government is complaining about excesses in the financial sector - which they have been able to regulate for 13 years!

[@BOZ_11]

SVB did NOT engage in risky behaviour. They bought GOVERNMENT securities, and then the Fed jacked up interest rates, massively devaluing SVB reserves. Even then, it's not a problem if the Fed bought those treasuries for 100c on the dollar in return for central bank reserves (those treasuries would mature anyway, they're safer than houses!). This was a land grab by the big US banks, using the Fed, to get their hands on SVB assets (regulatory capture). I have no proof of the final point, but it's my strong intuition. They did QE 12 years ago, what's changed? This is not a banking crisis

[@wrote8]

You can almost see the slime dripping off those bankers!

[@alessandrogiglisongwriter3073]

I have just received a 12th increase on my mortgage and they waste time talking about their bonuses... SLIME!!!!

[@jellslixcy6168]

The Bank of England are unlikely to be your mortgage lender and they weren’t talking about bonuses for the Bank of England. SVB uk are not mortgage lenders either

[@alessandrogiglisongwriter3073]

@@jellslixcy6168 wrong the Bank of England increases the base rate. Not the lender.

[@TheIncredibleBeard_]

It's not a bonus if it is a contractual obligation, regardless of company performance. I work for a large international company and any bonus is always based on the performance of the company as a whole. We've let the banking sector grow to such a state that normal rules of business no longer seem to apply.

[@IrritatedBear]

But the bank was a ring fenced bank ring fenced from USA?

[@danh5637]

SVB failed because it bought government bonds and then interest rates went up. 🤷‍♂️

[@The-zl8en]

As Clement Atlee once said about city of london banking ‘over and over again we have seen that there is in this country another power than that which has its seat at Westminster’. This is part of a much wider issue where the elite class syphon money out of the global economy and are rewarded handsomely with bonuses

[@fedup664]

I don't understand they had public bail ot a few years ago not one of the bankers deserve bonus

[@callumbush1]

These selective committee's are a joke.

[@lcharles5909]

I miss Mark Carney and I love Andrea Leadsom. These people live in a different universe.

[@evolassunglasses4673]

She did a good job here.

[@Liverpoolboy01]

Banksters looking out for Banksters!

[@silvercfox7366]

She loves her one words answers...not possible

[@johnpoile1451]

It does not excuse a 10 minute meandering reply in the hope that the original question gets lost in the mists of time.

[@stuontwo677]

because she doesn't understand the complexities and is only interested in a political soundbite.

[@evolassunglasses4673]

She is closer to the problem than most. All our problems are just symptoms of the Banking system.

[@evolassunglasses4673]

@@stuontwo677 he's been a disaster everywhere he has worked. She did a good job today

[@perirgensolsson3673]

thats the beauty to work in a protected workshop.

[@Hazzer2007]

00:55 being an MP

[@philbateman1989]

My first business failed and I had to have it struck off from Companies House. Thankfully I was the only employee, as well as the CEO. Nobody lost money or was impacted in much of any sense. Question: Did I deserve a bonus for ruining a company through inexperience? I got screwed if so.