In a slap down to George Osborne the Advocate General of the EU Court of Justice has rejected the UK’s challenge to its cap on Banksters bonuses. The cap restricts bonuses to 100% of banker’s pay or 200% with shareholder approval. Advocate General Niilo Jääskinen gave an opinion that the EU legislation limiting the ratio was valid. The cap on the ratio is designed to reduce incentives for bankers to take excessive risks but critics say it will push up basic pay and banks’ costs. The UK government challenged the legislation asking the Court of Justice in Luxembourg to consider six arguments challenging both the scope and the legal basis for the new rules.
Advocate General Jääskinen said: “Fixing the ratio of variable remuneration to basic salaries does not equate to a ‘cap on bankers bonuses’, or fixing the level of pay, because there is no limit imposed on the basic salaries that the bonuses are pegged against.”
This entirely sensible ruling from the EU Court of Justice has led to the usual cat wailing from the “Greed is Good” apologists with ridiculous claims that the City of London is the main artery of our economy and that reducing bonuses from the stratospheric t to the merely ludicrous will threaten the UK Economy and “Our” prosperity.
This is a strange claim in the extreme. A bankers main artery appears to be their powdered noses for otherwise how do you explain their reckless immoral and socially useless behaviour which led to the 2008 Banking Crash which means these Banksters are Benefit Scroungers to the tune of £292 Bn. it has cost the UK Taxpayer to bail them out. This is the cost we have all paid to support their unsustainable business in a huge transfer of risk from the private sector to the Public purse. How else do you explain their serial dishonesty since evidenced by the PPI Scandal, the Interest Swaps Scandal, the Pensions Scandal, the Money Laundering Scandal, the LIBOR scandal, the Forex Trading Scandal and God knows what else is to come out of the woodwork.
All this while betraying small businesses and consumers. I’d expect the usual cheerleaders to ritualistically defend greed and selfishness but what is their defence of incompetence?