EU Cap on Bankers' Pay Could Threaten City Workers

Originally published at The Upcoming



Members of the European Parliament have agreed on restricting bankers’ bonuses at the European Council meeting in Brussels, on Wednesday 28th February.

They agreed that “bankers’ annual bonuses must not normally exceed their annual salaries”, except for bonuses “of up to twice annual salary” when authorised by shareholders.


Britain wants effective bank regulation but is concerned about the effect a cap on bankers’ pay may have on the City of London. Photo: Bloomberg
There are currently 154 Banks incorporated in the UK, according to a January 2013 Financial Services Authority (FSA) list, and even more operating within Britain.

In June 2010, British economist Sir John Vickers was appointed by Chancellor of the Exchequer, George Osborne, as the Chair of the Independent Commission on Banking.

The commission aimed to recommend banking policies on “reducing systemic risk” and “mitigating moral hazard” while “promoting competition in both retail and investment banking”.

Prime Minister David Cameron said: “We do have in the UK – and not every other European country has this – we have major international banks that are based in the UK but have branches and activities all over the world, and we need to make sure that regulation put in place in Brussels is flexible enough to allow those banks to continue competing and succeeding while being located in the UK.”

The EU also wants to raise the capital threshold needed for banks to 8% quality capital for more transparency. Banks would have to publicly disclose profits, taxes, turnover, subsidies and their number of employees by 2015.

Austrian EU Parliament member and politician, Othmar Karas, said: “We have achieved the most comprehensive bank regulation package in the EU. Banks will be stabilised and more resistant to crises.”

Irish Politician and Finance Minister, Michael Noonan, told Bloomberg television: “We think there is a median where a settlement can be reached without upsetting the cost base in the City of London or without depriving people of rightfully earned bonuses.”

The European Central Bank said on the 24 January 2013 in a Bank Structural Reform document that: “The financial crisis has clearly highlighted that the governance and control mechanisms of banks failed to rein in excessive risk taking. Hence, the Euro system highly welcomes the proposals on strengthened governance of banks.”

The plans have to be agreed by the European Parliament by a vote on the 15th-18th of April and the rules then have to be made national law by January 2014.

Defence Secretary Warns "Cut Welfare, Not Troops"

Originally published at The Upcoming

Defence Secretary Philip Hammond told The Telegraph he will be “fighting the case for the defence budget” in the upcoming spending review.


Defence Secretary Philip Hammond wants more military funding for training programmes after Afghanistan.
After “very large cuts to defence” Hammond said “we have to look at the welfare budget again”.

Defence secretary since 2011 and Conservative MP for Runneymede and Weybridge, Hammond continued: “The welfare budget is the bit of public spending that has risen the furthest and the fastest.”


The 2013 budget will be made by Chancellor George Osborne, with a statement to Parliament on Wednesday 20th March 2013.

Hammond said on possible further military cuts: “We can’t go on doing that…without having significant impact on military capability.”

The 2010 spending review on Defence and Security states: “The Spending Review fully funds Britain’s operations in Afghanistan, and targets investment on cyber defence and other expected future threats.”

It also shows a rise in the Defence Departmental Capital budget, from £8.6 billion in 2010, to £9.2 billion this year.

The Spending Reviews forecast of Annually Managed Expenditure (AME) for total welfare cost was £32.9 billion in 2011 and £599 billion in 2013.

Prime Minister David Cameron has hinted at dipping into the International Development budget to help ease military costs. The International Development predicted budget is £7.2 – £9.4 billion for 2012-2014.

The Ministry of Defence says its main priorities for 2013 are to continue military involvement in Afghanistan until 2014, and to continue “defence commitments at home and across the world” and to “continue the transformation of defence through the restructuring of the armed forces to create a simpler and more effective organisation at a lower cost to the taxpayer”.

There are currently 9,500 military in Afghanistan. The government spent £700 million in 2006/7 and over £3.7 billion in Afghanistan in 2009/10. There is also an aid programme for Afghanistan and Pakistan worth more than £1 billion (over four years).

Also, £15 million was spent on “security services” in Pakistan and £32 million for “humanitarian assistance in the region”. And more than £1 billion on 1,000 “protected vehicles”.

Chancellor of the Exchequer George Osborne said in his 2012 August statement there was a 1% rise for those in receipt of benefits “that is fair and will ensure that we have a welfare system that Britain can afford”.

Channel 4's Jon Snow discusses Child Abuse

Originally published on The Upcoming

Channel 4’s news presenter Jon Snow revealed on his blog on Monday of the childhood abuse that was “regurgitated” after Jimmy Savile‘s victims came forward.



Snow (pictured) says abuse claims must not become a ‘witch-hunt’. Photo: Sutton-Hibbert/Rex Features
Snow described the memory of being six years old when “a member of the domestic staff at the school, where my father taught, abducted me. He took me to his room and undressed me, and then himself”.

Snow recalls how he remembers “to this day fretting over not being able to do my braces up”.

Snow said the BBC Savile sex abuse case “is forcing many to relive the abuse inflicted upon them,” and commended the bravery of victims who have come forward.

He added that Savile “exposed the institutional tolerance of the established media to gross misbehaviour, so long as the celebrity was big enough”.

Past practices of the media were also recounted in the blog. Snow said for women “remarks about physique and ‘sexiness’ were rife” and how “there was a constant and prodigious intake of alcohol”.

The blog also mentioned recent abuse claims in parliament and the church, stating, “allegations are flying around the corridors of virtually every institution in Britain”.

Amongst a flurry of UK abuse allegations, Snow said “this is a dramatic moment in the affairs of men and women; we shall all be tested”, adding that “no amount of effort in responding to complainants must be spared, but neither must it be allowed to become a witch-hunt”.

There are already more than 40 responses to the blog, including one user who commented: “placing responsibility with the abusers and placing guilt on the floor”. Another user said: “the more we know, the easier it will be for people to speak out…hopefully”.

Snow’s revelations were originally published in Shooting History, his 2004 autobiography.

Lib Dems say Clegg was Unaware of Sexual Harassment Claims

Originally published on The Upcoming

Lib Dems say Clegg was unaware of sexual harassment claims
Nick Clegg has said he was unaware of sexual harassment allegations against former Liberal Democrat Executive Chair, Lord Chris Rennard.



Nick Clegg claims he didn’t know about sexual allegations against Lord Rennard.
Photo: PA
On 21st February, Channel 4 aired claims of Rennard’s sexual harassment. Since the controversial show, a Lib-Dem Party inquiry has been set up.

Party President, Tim Fallon, said in an interview to Channel 4 on 22nd February that Clegg only knew about the allegations when the show aired.

When asked if Clegg might have known about the allegations before, Fallon replied: “I’m sure that’s not the case,” adding the allegations are taken “dead seriously…having said that, a person is innocent until proven guilty”.

Vince Cable said the inquiry will: “establish exactly who said what to whom and whether these allegations were properly pursued at the time…rather than jump to conclusions we should just wait until this investigation has taken place.”

The complaints were first taken to Women’s Minister Jo Swinston and MP Paul Berstow.

The alleged victims received an email in 2008 stating: “there has been a long standing problem with a number of women where the abuse of Chris’s [Rennard's] position was clearly inappropriate” and that talks with “somebody senior in the party” meant Rennards had “been informed that the behaviour has to stop.”

In a statement after the Channel 4 show, Lord Rennard said: “in 27 years working for the Liberal Democrat Party, not a single personal complaint was ever made against me to my knowledge.”

At a conference on 19th of September 2009, Clegg praised Rennard saying: “if it wasn’t for [Rennard's] guidance and encouragement I wouldn’t have been elected as an MP…let alone now be running the party…we are immensely, immensely grateful for it.”

Rennard is known for his numerous political successes in by-elections. He is also an International Fund Raising (IFR) consultant.

A parliament gossip blog from 8th May 2011 about Rennard and the IFR hinted at Rennard’s alleged inappropriate behaviour.

It read: “It doesn’t look as though [Rennard] will have many junior staff to worry about, [IFR] appears to have only one female trainee for 23 consultants and associates. She might then find herself pulled in too many other directions to service the needs of Lord Rennard.”

The Liberal Democrats Constitution (last updated November 2012) states the party “oppose all forms of entrenched privilege and inequality”.