From The Sunday Times -- October 4, 2009

Lloyds banking group to reignite bosses bonus row

LLOYDS BANKING GROUP is expected to stir up a fresh outcry over banking bonuses as it draws up plans for a multi-million pound incentive programme for its top managers.

The bonus plan is the first to be put in place since the banking giant was created from the merger of Lloyds TSB and HBOS and subsequently bailed out by the taxpayer.

Earlier this year the Lloyds board, led by chief executive Eric Daniels, who earned a basic salary of 1m last year, agreed to waive bonuses in the face of a public backlash.

Wolfgang Berndt, chairman of the remuneration committee, is working on the new scheme. He will benchmark Danielss bonus package against other bank bosses. This will include a comparison with Stephen Hester, who could earn 9.6m if he leads a turnround at the state-controlled Royal Bank of Scotland.

The executive remuneration review will be followed by an assessment of bonuses all the way down the company. Berndts proposal is expected to be put to shareholders for approval next January and February after the financial year-end but before the group posts its results. Details will be contained in the annual report. Lloyds said: We are currently in the early stages of this executive remuneration review.

Any decisions that are taken will be made within the context of last weeks announcement about executive remuneration from the Treasury, the recommendations of the Walker review and the FSA code on remuneration.

Lloyds priority remains to sort out its balance sheet. Daniels is likely to launch a 10 billion rights issue to lessen the banks reliance on the governments asset protection scheme, which could drive the taxpayers stake from 43% to 65%. At the same time, he is under pressure from Neelie Kroes, the EU competition commissioner, to carve up the group.

UK Financial Investments, which manages the governments bankstakes, is understood to have suggested to Sir Win Bischoff, Lloyds chairman, that he could reduce the size of the Lloyds board.

One plan would be for retail and wholesale executives Helen Weir and Truett Tate to step down. Tate may leave the company. It is understood that Gershon Cohen, head of Lloyds project finance team, is being groomed to succeed him.

Meanwhile, Lord Myners, the City minister, is expected to ask the top investment banks this week to sign up to the strictures on bonuses agreed at the recent G20 meeting. High street banks agreed to fall into line last week.

From The Sunday Times -- October 4, 2009

ALISTAIR Darling has said the Treasury will study proposals from the International Monetary Fund for a tax on banks to provide for poor countries and offer insurance against future financial crises.

However, the chancellor, attending the annual meetings of the IMF and World Bank in Istanbul, warned of practical difficulties and said such a tax would be rejected if it worked to Britains disadvantage.

Dominique Strauss-Kahn, the IMFs managing director, aims to bring forward proposals for a worldwide bank tax. He told the meetings that a Tobin tax on financial transactions, favoured by Lord Turner, chairman of the Financial Services Authority, was not practicable.

A broader bank tax, with proceeds paid into a fund for international development and to be used to mitigate the effects of future crises, could work, he said. A team under John Lipsky, an IMF deputy managing director, is to work on it.

Darlings preference has been to target the banks through higher capital requirements rather than new taxes. He conceded yesterday, however, that there was high-level interest in the idea.

Last week he struck a deal with Britains big banks to limit their bonus payments.

The chancellor also said that the G7, the group of leading advanced economies, would still have a role, despite the rise of the G20 as a larger rival body. He dismissed the idea of a smaller G4 to represent America, China, Japan and Europe.

Darling said the UK would not easily give up its permanent seat on the IMF. The UK would resist a shift in IMF voting rights to the big emerging economies greater than the 5% move agreed . G7 finance ministers and central bankers, meeting last night, welcomed signs of improvement in the global economy, but warned that downside risks persisted.

U.K. Treasury Seeks to Extend G-20 Bonus Curbs to More Banks

Oct. 4 (Bloomberg) -- U.K. Treasury minister Paul Myners is pressing more banks to adopt the curbs on bonus payments agreed by the Group of 20 nations and will meet with institutions including Goldman Sachs Group Inc. and Morgan Stanley.

We will speak to the major investment banks with significant operations in the U.K. and urge them to endorse and act in accord with the decisions made at the G-20 and ensure that those decisions are reflected in the decisions that they make in 2009, Myners said in an interview with the Sunday Telegraph in London. A Treasury official confirmed the remarks.

The Treasury also wants to discuss the matter with officials at JPMorgan Chase & Co., Deutsche Bank AG, UBS AG and Morgan Stanley. Last week, Chancellor of the Exchequer Alistair Darling got Barclays Bank Plc, HSBC Holdings Plc, Lloyds Banking Group Plc, Royal Bank of Scotland Group Plc and Standard Chartered Plc to sign up to the G-20 plan.

The measures require banks to claw back payments made to traders whose transactions go wrong. Theyre aimed at preventing pay from encouraging risky trades and weakening the capital position of institutions.

Darling wants to avoid voter anger over executive pay in the months before the next U.K. election, which must be held by June. He has said that pay should reflect the performance of traders, not the overall revenue of the bank, and that more awards should be given in stock instead of cash.

Tied to Performance

Bonuses need to be tied to performance, Darling said yesterday in Istanbul, where he is meeting other G-7 finance ministers. Having signed up to the agreement, we expect that banks, whatever they do come the bonus season, they stick to what they said.

While no U.K. banks revealed the size of their 2009 bonus pools, Goldman Sachs Group Inc. set aside a record $11.4 billion to pay compensation in the first six months of this year. The U.K. Treasury has extended 1.4 trillion ($2.2 trillion) of support to the economy including backing for Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc and loan guarantees for other programs.

Darling last week targeted what he calls greed and recklessness in the financial system, asking banks to curtail bonuses and said the rich will pay more in tax.

RBS Chief Executive Officer Stephen Hester on Sept. 29 said he supported Darlings promise to curtail banker bonuses. RBS will be less affected by Darlings proposals than other banks because the lender adopted deferred bonuses and clawbacks last year, Hester said in an interview. Regulation of bonuses will benefit RBS by creating a level playing field among banks, he said.

The bounce for tomorrow after last friday move up from support level

the lloys board are spending more time on there bonus payments than on the company performance the boar along with the new chairman are a disgrace to man kind they should be sacked wait till the next agm i will stand up and say something that i no to be true the papers will have a top story

TANKER

Its Monday try to be positive, mourning is too easy.
LLOY is UP as predicted

LLOY is UP as predicted
that was long odds on after last weeks declineand Master my Palestinian friendthe day has only just begunif I had a gun at my headI would go for a negative finish with both lloy and ftsebut my predictions are worth the value of yours nixieall guess workif your guess is better than mine good luckdo you bend spoons in your spare time?

He may not be able to bend spoons but I bet he can walk on water...

tabasco

I have no spare time no "magic", I have notived "short term" I can beat you most of you with my eyes close.

And I give you the reason also, something that is mising on most of the tendencies on this thread.

Have a coffe for a change, and stop making predictions of your good "friend", cos if you keep guessing ........one day .................... maybe you will be right, ofcourse nothing much left to guest about.

Cheer UP LLOY is UP, but after all you are not holding, just passing time while you are finishing the bottle.

Something to sober you UP, do not forget the sweties on the side, it helps

COFFEE TIME

this bank is run worse than a third worldbank in the congo

Balerboyhe wouldnt need to walk on waterhe can part seas.

Master...I am right!!!

RSI.

With the market as volatile as it is, your interpretation of the LLOY charts seem a little optimistic, when drawing your support lines?

Perhaps a support line of 87p maybe more applicable.

(But like looking at clouds, some see rain and others see crops growing.)

Fred1new

re - Perhaps a support line of 87p maybe more applicable.

And I thought that only "tabasco" was on the bottle, it seems you are there all the time by your own posting...............

MoneyAM Username: Fred1new
Real name: unknown
Location: Somewhere in Alcohol


Maybe you are trying to know.... but know nothing,
I will try to prove you wrong later with a chart of " money am " where the support lies" naturally I will have to use magic for that.

Fred1new

re - support 87p

Do I see 93.73p on the support not 87p as you said
Have a look at my line at chart post 927

Another one bite the dust.......... next
you are not good enough to clean my shoes, mind you try to tell me about charts

Masteryou seem to know a lot about dustdo you wear Desert boots?...can you do the sand dance?

Master.... I cant speak for Fredbut I think he believes your line of support should be around the laryngeal prominence

re - laryngeal prominence

I forgot to tell you to take it easy when eating the cakes with the "coffee", it looks like something got stucked there, get "joe the plunger"

                     

Fredlooks like you are going to need a bigger noose

Bank opens framework to smaller banks -- Mon 05 Oct,

LONDON (Reuters) - The Bank said on Monday it will give more banks access to its open market operations and deposit facilities to help smaller institutions better manage their liquidity.

The announcement comes in tandem with the Financial Services Authority's new rules on bank liquidity, and will help smaller institutions -- who normally hold cash balances with large commercial banks -- to minimise risk under the new capital adequacy rules by parking money with the central bank instead.


Analysts said the BoE's announcement held few implications for the gilt market, although gilts could benefit from the FSA rules in the short term as they carry zero risk under the new regime.

"This avoids a situation where smaller banks are starved of liquidity," said John Wraith, head of sterling rate product development at RBC CM.

Previously, only institutions with an average level of eligible liabilities of at least 500 million pounds could apply to hold a reserve account with the central bank and participate in its regular tenders, the BoE said.

"The Bank is widening eligibility to apply for access to Reserves Accounts in order to assist smaller institutions to manage their liquidity," the BoE said in a statement.

The liabilities which count towards the total a bank must have on its books to qualify to apply for a reserve account with the BoE include: deposits with a maturity of greater than two years, debt securities with a maturity of a maximum of five years, foreign currency liabilities and loans to other domestic banks.