Bankers Bonuses Essay Example | Topics and Well Written Essays - 1250 words

Bankers Bonuses - Essay Example In this regard the musician stated that he is Q-â€Å"No longer prepared to fund the excessive bonuses of RBS investment bankers. Unless he acts to limit [bonuses] to  £25,000, I shall be withholding my tax payment on 31st January.†Ã‚   What has complicated the issue is that the bank is primarily owned by the British tax-payers and received massive bailout funding from the Government of Great Britain. It was further postulated P- that this represented a not just a localized trend but reflected an international trend insofar as it is the case that nearly $100 billion U.S. or  £62bn is going to be paid out in bonuses this year. Ordinarily this would see to represent a massive problem to the American taxpayer however it is the case that the biggest banks on Wall Street which will be giving out the bonuses are Q- delivering profits of as much as $11bn. Citibank and Bank of America are both likely to deliver profits of at least $6bn, while Morgan Stanley will reveal a much smal ler figure of around $1.2bn. One could present that the argument that in Scotland that if it is the case that the RBS is going to have huge losses, needs huge federal subsidies to stay afloat and is owned by the citizens/taxpayers of Great Britain than the paying out of unreasonably high executive bonuses would seem to be unjustified. However in the American context if these major banking firms are settling their repayment criteria and are generating profits above no harm in paying bonuses to their management assuming that the mid level investment.