dividends

When cash is in short supply and the risks of unemployment is high the government (via the bank of England via its Prudential Regulation Authority) have instructed all UK banks not to issue any dividend this year to its shareholders
 
Seems pretty sensible, they should keep as much cash in the bank (pun intended) as possible
 
They're requesting that senior staff and MRT don't get cash bonuses either.

There are (likely) a lot of grumpy faces going round.

Luckily, I am neither senior enough, nor important enough to fall in to those categories - but will be interesting to see how much this impacts the bonuses of us further down the food chain.
 
I issued myself my company dividend :-D
 

Grownup_Rafbrat

LE
Book Reviewer
I presume it's to stop all that lovely money the Government is issuing in order to stop small businesses from collapsing ending up in the bonuses, dividends and balance sheets of Banks.

Cynic, me?
 

anglo

LE
Bankers, A shower of bastards
We bail them out, they freck us over with interest rates, where the government bought shares
tax payer robbed again, now the banks are asked to give loans[with government backing]
to keep businesses from going bust, the terms offered to businesses are complete crap.
Bankers, did I tell they're &^%$£"*&&&
 
Bankers, A shower of bastards
We bail them out, they freck us over with interest rates, where the government bought shares
tax payer robbed again, now the banks are asked to give loans[with government backing]
to keep businesses from going bust, the terms offered to businesses are complete crap.
Bankers, did I tell they're &^%$£"*&&&
I believe, although am not Front Office so am not 100%, that the terms have been broadly dictated by the government - things such as business being required to seek alternative funding elsewhere before getting a loan (in relation to COVID19).

What would be your proposed alternative to the current Banking set up?
 
I presume it's to stop all that lovely money the Government is issuing in order to stop small businesses from collapsing ending up in the bonuses, dividends and balance sheets of Banks.

Cynic, me?
Maybe (think of the reputational impact (and Daily Mail headline) - "Top Banker gets bonus that could have saved 17 businesses from collapse"), but also (mainly?) to ensure that the bank has sufficient Capital to resist any further shocks to the system that are to come.
 

Grownup_Rafbrat

LE
Book Reviewer
The Business Secretary marked their cards today. Remined them that the nation bailed them out 12 years ago and expects them to behave well now.


Before fecking Kuenssberg, Peston, Beth et al spoilt everything by talking nonsense, quoting skewed statistics and p1ssing me off.
 

anglo

LE
Maybe (think of the reputational impact (and Daily Mail headline) - "Top Banker gets bonus that could have saved 17 businesses from collapse"), but also (mainly?) to ensure that the bank has sufficient Capital to resist any further shocks to the system that are to come.
You mean like in 2008, when the good old tax payer bailed out the banks, then the tax payer
lost money on the deal when it was pay back time
 
You mean like in 2008, when the good old tax payer bailed out the banks, then the tax payer
lost money on the deal when it was pay back time
I would venture that bailing out (some) of the banks was better than the alternative.

Now we're bailing out the businesses.
 

Daxx

MIA
Book Reviewer
When cash is in short supply and the risks of unemployment is high the government (via the bank of England via its Prudential Regulation Authority) have instructed all UK banks not to issue any dividend this year to its shareholders
And?
 

anglo

LE
I believe, although am not Front Office so am not 100%, that the terms have been broadly dictated by the government - things such as business being required to seek alternative funding elsewhere before getting a loan (in relation to COVID19).

What would be your proposed alternative to the current Banking set up?
It doesn't matter what I think as an alternative, it's not going to happen,
The banks now charge high interest rates on loans whilst giving next to no interest
on savings,
,Banks have been criticised by firms and MPs for insisting on personal guarantees to issue government-backed emergency loans to business owners.

 
It doesn't matter what I think as an alternative, it's not going to happen,
The banks now charge high interest rates on loans whilst giving next to no interest
on savings,
,Banks have been criticised by firms and MPs for insisting on personal guarantees to issue government-backed emergency loans to business owners.

So if you have no alternative, then why whinge online - its isn't going to change things either.

The asking for personal guarantees is, I agree, a shitty thing to do - I think that theyll be on the reversocycle over that one.

Interest rates on savings...have you seen the base rate? You do know these are businesses as well, right?
 

anglo

LE
I would venture that bailing out (some) of the banks was better than the alternative.

Now we're bailing out the businesses.
I would venture that bailing out (some) of the banks was better than the alternative.

How do you know the alternative wasn't tried
Now we're bailing out the businesses.

At what cost to the businesses and tax payer
 
I would venture that bailing out (some) of the banks was better than the alternative.

How do you know the alternative wasn't tried
True, it wasn't tried. However look at the damage / hysteria that happened when just Northern Rock went wobbly - now imagine what could have happened if all those banks that received Government funds had collapsed. I doubt it would be much fun for them, those employed by them (who, might I remind you, aren't all on popstar wages - in fact most aren't), or the wider population (or businesses that were linked to them).
Now we're bailing out the businesses.

At what cost to the businesses and tax payer
Not too sure of the long-term cost just yet, but again - what would be your alternative? Let all the businesses go bankrupt straight away? (albeit this current cash injection is just delaying the inevitable for many).

Yep, taxes will almost certainly have to go up. It sucks.
 
Well, unless somebody knows of specific examples that have bucked the trend, dividend payouts made by banks have been truly woeful since the crash of ten years ago. Very much not the place to invest.

Nobody will notice the difference if they receive nothing at all.
 

Daxx

MIA
Book Reviewer
If you want decent divi payments, BT and the Supermarkets.
 
So if you have no alternative, then why whinge online - its isn't going to change things either.

The asking for personal guarantees is, I agree, a shitty thing to do - I think that theyll be on the reversocycle over that one.

Interest rates on savings...have you seen the base rate? You do know these are businesses as well, right?
But yet banks are happy to set mortgage rates way above base rates.
 

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