Tuesday, 14 August 2012

The Bank of England –still marching to its own tune.


Further proof that the Bank of England remains out of touch was provided by the news that Staff bonus payments have totalled  £25m in the 5 years since the credit crunch began.

Despite failing to spot credit crunch and rate fixing scandals thousands of Bank executives have received bonuses of up to £30,000 in performance related bonuses.

The timing of this announcement  could hardly be worse coming days after Governor Mervyn King warned a recovery for the economy is still years away and slashed its growth forecast for the year to zero.

In response to criticism that the Bankers were being rewarded for failure a former Bank of England chief said “it should have done more when credit crunch struck five years ago” demonstrating a flair for stating the obvious.

Figures released last week showed that the level of payouts actually increased last year by £200,000 to £4.9million – as Britain returned to recession.

It begs the question what would the rewards have been for a competent handling of the situation?


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