Bankers get massive bonuses, this is something we’ve all become painfully aware of in the last few years and these bonuses go on and on no matter what the economic situation. Those who aren’t too keen on the whole bonus structure will be happy to hear about the new 50% tax on bonuses and now the Bank of England has told its banks to cut bonuses and reduce dividends and put the money saved to one side to safeguard against the current risk in the Eurozone.
The Bank of England estimate that for every £10 million saved, around £50bn of lending could be sustained which would help new mortgage lending and prevent house repossession from taking the property of homeowners. Do you think the lenders will cut back on bonuses? It’s unlikely if they are to continue providing jobs in the City as employees will simply go where the money is.
Tags: avoid repossession, house repossession, sell and rent back, stop repossession