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The Credit Cruncher was conceived to help you to keep up to date with credit crunch and recession developments, it provides some helpful credit crunch advice and it addresses personal debt. The Credit Cruncher also seeks to explain how the credit crunch started and shed some light on the worldwide recession. Recently, we have begun to look at how BREXIT will affect the UK economy. Please feel free to leave comments where relevant.

7 Feb 2009

Government to investigate bank payouts

Alistair Darling has announced an investigation into the way banks pay bonuses following the assignment of billions of pounds to bail out banks, including a majority stake bought by the government in the Bank of Scotland. The banks have complained that they are contractually obliged to make some payments, an argument that is not going to hold sway with the taxpayers who would argue that without bailouts, their employees would be collecting dole.
Already Northern Rock, another company under the ownership of the taxpayers, has announced performance-related bonuses for it's 40,000 employees.
Darling has said "I am now setting up a review which will examine how banks are managed, bank boards have a duty to ask more searching questions of their executives ..... when times are good as well as when they turn bad."

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