Rewarded for failure
4th March 2009
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Todays news is as is usual these days, depressing. Unless you are "a senior banker".

Fred Goodwin, destroyer of RBS, had his pension virtually doubled in a brokered payoff authorised by City Minister Lord Myners, when any other business would have sacked him for gross incompetence, at least. Fred was a member of the committee that advises our government on finance until 5 weeks ago! Come to think of it, that isn't really a surprise.

Adam Applegarth, destroyer of Northern Rock, was given a "golden goodbye" of nearly £900,000. Northern Rock plunged to a loss of £1.4 Billion pounds last year, causing untold hardship to it's customers and consequently to all taxpayers. He will also receive a pension of £305,000 per year when he reaches 60. He is not alone, Northern Rock gave his replacement, Andy Kuipers, a "golden goodbye" of £708,000 and this is just the tip of the iceberg.

Now we are told that over 200 London based executives of Dresdner Kleinwort, reportedly part of a £5.7 Billion loss are to sue for up to £10 Million each in bonuses.

There are many more examples and one very disturbing underlying fact. In virtually all of these cases legal action is being taken. Lawyers are going to get even richer, guess who is going to foot their bills?

We are pleased to be dealing with honest businesses who are fighting for survival. Failure will not be rewarded, in many cases it will be punished by the banks. This is so grossly unfair.

Mervyn L

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