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Vince Cable; Moron or visionary?

14 February 2011 2 comments

Roy McPherson

Yet again Vince Cable stands atop his economists soap box and tells the City that radical changes are needed to stop banks making "excessive profits and paying big bonuses".

I've always thought that economists have too much brain and not enough practical usage and Mr Cable is a perfect example. How can someone so well schooled be so dim in the real world. The general public may have its eyes on banker’s bonuses but those of us with a smidgeon of common sense can see that Cable wants to cut off his nose to spite his face. He insists that he wants to make a fundamental reform of the relationship between retail and investment banking. Does he really believe that a bank with purely a retail focus can compete on a level playing field with the big foreign banks that would seize the opportunity to gobble up more business from an emaciated RBS, Barclays, Lloyds etc. This country need banks at the top table, big hitting along with the other global players. Where does he think the money will come from to allow the massive investment required for next generation systems etc., from overdrafts and personal loans?

As for the general public that Cable is pandering to, I suspect they would have far less problem with a banker earning a bonus from profit sharing scheme than they would with a local Government mandarin earning a fat bonus for running some of the most inept institutions in the country or for that matter an MP's expense fraud.

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Comments: (3)

John Dring Digital Services and mCommerce at Intel Network Services

14 February 2011

Sure, he is pandering to public opinion, which includes the view that most bankers are fortunate to command such bonuses when there are dozens equally skilled lined up behind them waiting for a chance too. Normally, with such competition, its possible to cut compensation without losing quality, but it seems the gravy train rolls on.

I simply don't see that curbing bonuses (and therefore being much more competitive in the actual marketplace, and gaining business as a result) would lead to an exodus of talent. Leagues of new blood would fill the ranks and stir up the old school.

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A Finextra member

15 February 2011

"You are old, father Vince," the young man said,
"And your hair has become very white;
And yet you incessantly stand on your head --
Do you think, at your age, it is right?

"In my youth," father Vince replied to his son,
"I feared it might injure the brain;
But, now that I'm perfectly sure I have none,
Why, I do it again and again."

"You are old," said the youth, "as I mentioned before,
And you have grown most uncommonly fat;
Yet you turned a back-somersault in at the door --
Pray what is the reason for that?"

"In my youth," said the sage, as he shook his grey locks,
"I kept all my limbs very supple
By the use of this ointment -- one shilling a box --
Allow me to sell you a couple?".....

You are old, Father William -- Lewis Carroll

He's Lib, Lab, SDP, Lib
He believes that the Liberal Democrats should stand for "fairer taxes, not higher taxes"
so that's OK = then tax everybody else but not me, make cuts but not anything affecting me
maybe a "mansion tax" in Twickenham wasn't such a good idea but abolishing university tuition fees played well to the voters but how to square not voting for his own bill in the House??? tricky...
Oh much harder when in power and decisions have to be made not just criticism.

But on the good side I have seen him on the train many times in the past so he's not totally isolated from reality:-)