Bankers will vote Lib Dem

[jackstarbright]

Vince Cable Interview in the weekend FT.

"Vince Cable on Friday insisted that many bankers were so 'ashamed' at the state of their industry that they would vote for Liberal Democrat plans to break up the banks and slash bonuses."

Also in the Indy:
Bankers to back Liberals.

What do you think - wildly optimistic or talking sense?

By bankers I guess he means NC father?

This man is losing his grip on reality me thinks.

Turkey's don't vote for christmas.

Could you give a precis of any specially interesting pieces from the interview, jsb as it comes up with a subscription form for me...

agree with atlantis

(FWIW, I tried searching and the most I see - before a 'subscribe' box covers it - is a couple of sentences from the FT website. I assume there was some umpteen paragraph interview, so won't ask for a precis of that, far too much to ask. {I was able to capture the pre-subscribe box blocked version so could read it OK, just that it was only a couple of sentences...} )

that is crazy talk. this is what the LibDems have proposed

1. All bonuses over £2,500 would be payable in shares, which couldn't be redeemed, or pledged as security for loans or turned into anything spendable for at least five years.

2. No one on the board of a bank, not even the chief executive, would be eligible for a penny of bonus.

3. Loss-making banks would be banned from paying bonuses.

4. Every employee of a bank earning more than the prime minister - which Mr Clegg defines as circa £200,000 - would be publicly named.

I know lots of bankers. None of them would vote Lib Dem. They do not hold Vince Cable in high regard (understatement of the year).

Dh is a banker - unfortunately this single piece of policy is the reason he will vote Tory this time - we have always voted LD and Labour before but we can't this time .. Dh's salary is "subsidised" by occasional bonus's which we rely on .. If and when we do get bonuses they go towards paying off our damned OD and stuff - no foreign holidays here -

I wish the LDs hadn't set the bonus threshhold so low - it's going to cost them the votes of the banking industry and is rather shortsighted sadly ..

Duritzfan - probably worth sending them an e-mail to explain that view. I can quite understand that with housing and other costs, not everyone will be in the super-rich category from banking. It does seem a very low amount (and in some other thread, I discussed this with another complaining about it being hard on some bank staff).

Without giving anything away, would your DH be classed as a stockbroker who 'gambles' with the banks finances?

The suggestion I made on the other thread was that the LibDems need to distinguish between staff in High Street banks and those earning mega salaries in the first place. Staff on lower salaries should be able to get bonuses (eg up to 10,000) while the gambler end would be the ones dependent on shares (and therefore depend as much on them not causing, through 'risky' schemes, problems for the bank's share price).

A 'precis' of some other bits:

Mr Cable realises there is a need to keep the City competitive, but is concerned with maintaining the safety of the economy and fairness in society.

He thinks bankers understand the Lib Dem manifesto, including the a mansion tax and a crackdown on tax loopholes and pension relief for high earners.

He says that many bankers he meets are terribly embarrassed and ashamed that they let their industry get into this state.

• I hope I've been fair. The FT have strict rules about cutting and pasting - but you can register for free and read it yourself.

Oh, and Vince Cable also doesn't think many bankers will actually move abroad as a result of the changes he proposes.

I'm a LD (member) and yes, the bonus level made me go ?????. As far as I can see, the bonus level policy hasn't been through conference, unlike practically everything else in the Lib Dem manifesto. I agree, email them.

WebDude, would the High street staff really be the ones to get

I've previously argued an increase in basic salaries but without working in the banking sector, have no insight into any salaries at the High Street branches, and only speculative figures based on what comes out at other times for the city types (eg every one of 33,000 employees at some bank would be getting an average of 100K for the first quarter... from a news item last week on Radio 4).

If people are working on selling mortgages (tough for them to find candidates the bank would then accept) and meeting their targets over the course of a year, I could imagine them getting say 50 to 150 pounds as a bonus per customer - some of the web comparison sites got commission from 50 pounds for a lead that turns into a sale for house insurance, so you can see how it might be adapted within a bank, depending on products (and probably having tough targets to meet).

Lots of other areas are driven by commission rather than good basic salaries and a smaller bonus, it's why car salesmen and so on might be more flexible at the end of a month to get the numbers up...

Webdude - no dh isnt - he works for a bank doing research ..but would definitely get screwed under the proposals by them LD's...

I think I will email the LD's ... I think that they are not realising the reality of what they are proposing .. I agree that it is totally wrong that people are given hundreds of thousands and I would not object to an end to that - but to remove bonuses from a 2500 level ?

As you say, what about commission paid to other types of employee ? Are the LD's going to stop salesmen getting bonuses too ? Performance related pay is a big part of the market - surely it is unfair to single out any one profession ..

Or is this just another attempt to demonise anyone at all with any connection to the banking industry ..?

I feel sure it was aimed at the "gambler" end of the banking industry where millions are at risk each day, bonuses and salaries are massive compared with even the Prime Minister's and the bank, should it fail, needs to be bailed out by us.

I assume they have overlooked the aspect for staff in retail banking and those who depend on some level of bonus just to make ends meet. Perhaps they just need a gentle nudge from a few tens of thousands of High Street bank staff, whose unions (?) should have voiced something on this by now!

Mr Cable is getting ahead of himself. As much as I'm sure he wishes it will be the case. He has nothing to back up this assertion at all.

Webdude and I have already had a conversation about this on another thread! I may email the Lib Dems too, as Webdude has suggested. This proposal won't just penalise the multi millionaire traders, it will penalise just about everyone who works within the banking industry. Contrary to what the banker bashing public believe, most people who work within the banking sector receive pretty modest bonuses which they use to pay off debts/mortgage etc.

If Vince Cable thinks that bankers (ie anyone working within a bank) will vote Lib Dem, then I'm not sure what planet he's on. Perhaps Nick Clegg's Dad will vote Lib Dem but I can't think of anyone else who would contemplate it.

I'd love to know why they think that limiting cash bonuses to £2500 is a good idea - to me it seems like very cynical electioneering.

fwiw, most of the investment banks have raised base salaries, pretty much across the board. That way, they can pay out less in bonuses, (though it amazes me that any employer would choose to raise their fixed costs). The idea is that employees stop worrying about their bank coming under political pressure to cut bonuses. Also because many employees who had relied on a bonus have been dismayed by now receiving much of it in shares that don't fully vest for three years. (hard to pay the mortgage with unvested shares)

I think it is unfair to have the government dictate pay, in any sector.

Well a quick scan through this thread reveals:

All posters, who answered the question posed, believe Mr Cable to be 'wildly optimistic' (or as atlantas puts it 'losing his grip').

And no-one has defended his argument that bankers shame will drive them to vote Lib Deb.

No real surprise there, I guess!