Oh Lib Dems what are you doing to me? I sit her in my toothpaste stained jogging bottoms and a t-shirt saying ‘Brain Loading…47% Please Wait’ and feeling good playing Bejeweled Blitz and then I see a tweet and my anger soars to record (well that’s a lie – nowhere near record levels but still I’m pretty pissed off) and why I hear you ask? Well because of this tweet from a Liberal Democrat Peer…
It seems pretty innocuous but still, ‘We were told if we didn’t pay huge bonuses to bankers they would all go abroad. And the problem with that is? ‘ I think I need to respond for what the problem with that might be.
First of all the city is actually a vital part of our economy. As much as it is hard to say in this day and age when everyone wants to crush the bankers and the banks as I have blogged about on numerous occasions before, I think it is fair to say that the city helped us get into this mess but that without a strong city it is highly unlikely that we are going to get out of it. We can’t just kill the city because all that will do is stunt growth. It isn’t rocket science but it seems like it might be for some people.
The winner of the Best New Lib Dem Blog last year Richard Morris agrees with the Baroness:
‘@neilmonnery @baronessros of course you are presuminging (sic) that A)they would go & b)we wouldn’t find anyone equally ‘talented’ to replace them
Well first of all I think the presumption that bankers might leave the UK if they get offered more money overseas is a fairly safe one to presume. I know – and I repeat – I know – that this is already happening. People that I know are losing staff members because their bonus cheque for the last financial year was shall we say lacking. These are people that actually make money for the banks – and in turn therefore make money fr the UK tax payer – but they are going because they can earn more money elsewhere.
I also think it is fair to say that this happens in all forms of life. People will move on if they get a better pay packet elsewhere. It is why I can never understand why football fans get so worked up when a player leaves for another club and a huge pay increase. People go where the money is and everyone has their families to worry about and such. Even if they don’t then why wouldn’t they take more money to do a similar job? You would as would I. If someone offered me a job to do the exact same as I was doing today for a lot more dosh then I’d be off like a shot. We all would.
So I think we can safely say that the very best will move on – and we know they are the very best because other banks will want to hire them. The people who are crap and make no money won’t be highly sought after. This is how it works. That is purely logical. If you are good at your job then you will have more doors open to you to move onwards and upwards. If you stink then you try to tread water and stay where you are.
As for presuming that it would be hard to find people equally talented enough to replace them, well this one is simple. If they wanted to work in the banking sector then they already would. Rightly or wrongly the banking sector is motivated by one thing – money. If you work in the city then it is highly you like money – and a lot of it. You may also like women and drugs but these aren’t as big of a prerequisite as liking money. No-one gets into the banking industry because they want to save the world. They get into it because they are clever enough to and want to live a good lifestyle.
People say that they want the bonus culture slashed because it is obscene that bankers get huge bonuses when they do a bad job but what about doing a good job? If regulations are put in place in the K (and for UK based firms operating overseas) that reduce the bonus culture then all it will succeed in doing is force the good workers who make money to leave. They won’t stay and enjoy seeing their salaries culled they will just move on.
Going back to the original tweet what is the problem with all the people who make money going overseas and stopping making money for UK firms who employ people in the UK and pay plenty of tax in the UK (both the company and the employees) well let me think…I think I may have showed exactly the problem in that previous sentence.
Look I know it’s cool to bash the bankers. It is cool to see them as a collective and they are all as bad as each other. Well one thing I have learned in life is not to tar everyone with the same brush. Not all redheads are fiery and gorgeous (although most are), not all fat people are jolly, not all Tories were born with a silver spoon, not all Labour voters think pie & mash is the best meal ever invented, not all my online dating experiences have been horrific (well this one is close) but yes you get what I mean.
Yes the bankers who were dishonest and screwed things up should face the consequences but should those who have done and continue to do a good job face the same sanctions? Morally of course they don’t. You have to be an idiot (or a member of #ukuncut) to believe such nonsense but putting aside the moral argument it doesn’t make sense from a financial standpoint going forward either.
Like it or not many bankers are terrific at their job and earn their bonuses. If a department earns a company say £50million profit then what is wrong with a percentage of that money going to the people who helped earn the money? There are two things that motivate most people and money is the big one and the other is the promise of sex. They are the things that will motivate most people so if not money then do we propose lots of free sex on tap for good work? I’m not sure that will go down well in some departments so if it’s neither money or sex then what motivation do bankers have to work those extra hours and get business done? Not a great deal.
Some bankers are bad. Many more aren’t. Until we can get our stupid heads around this fact then bankers aren’t going to fare well. The sad fact that both the media and the government (both sides of the house) are willing to throw the banking industry under the bus because it fits in with what the electorate want to hear is depressing and when Lib Dem peers think that the bankers are one entity – and in so think they are all bad and wouldn’t be missed – then even the Lib Dems are starting to lose their sense of the real world.
I hope you enjoyed this blog post. Please leave any comments or contact me directly via the E-Mail Me link on the Right Hand Nav. You can stay in touch with the blog following me on Twitter or by liking the blog on Facebook. Please share this content via the Social Media links below if you think anyone else would enjoy reading.