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Banks preparing to move thousands of jobs from the UK

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    AnnsyreAnnsyre Posts: 109,504
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    Both my daughter and her husband are in the financial sector, she in a Swiss bank (that will definitely move to Frankfurt) and he in a French company (that likes the UK because it is dead easy to get rid of people unlike in France). It's a mixed picture, but what they think is that for the financial sector to remain World Class after a Brexit, it'll be by much looser regulation, which got us into such a mess in 2008. The unintended consequences are inevitable and the betting is they will be unpleasant.

    They can only move if they have freedom of movement.
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    mRebelmRebel Posts: 24,882
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    Net Nut wrote: »
    Sadly the thing our country seems best at is watching while every sector that can make us money is destroyed, allowed to die, or moves abroad.

    No wonder the French and Germans aren't making a big thing of trying to persuade us to stay.

    It's the banks who destroyed business. They caused the crash, they refused to use the mind bogglingly large public subsidy to keep credit available to business, which our criminal governments (Labour, Coalition and Conservatives) allowed them to get away with, and even robbed businesses, RBS, a bank we own most of, being the worst culprit. Have you not learned anything from 2008?
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    mRebelmRebel Posts: 24,882
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    tim59 wrote: »
    So were will you do your banking ? , and of cause then there are the thousands of jobs directly effected and thousands more indirectly effected. So please tell us were the Fantastic news is ?

    At a bank.
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    mRebelmRebel Posts: 24,882
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    Annsyre wrote: »
    They can only move if they have freedom of movement.

    That's an interesting thought.
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    ShaunIOWShaunIOW Posts: 11,326
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    trevgo wrote: »
    Oh dear. Have you asked them whether they still call it "project fear"? Perhaps they'd like a second referendum.

    Only 3 replies to this thread which says it all. Nobody has sympathy for bankers or The City in general. They should do. It contributes massively to the nation's coffers. For every £1M bonus, the Treasury receives £450K. That pays for hospitals and schools in Burnley, Hull, Doncaster, Mythr Tydfil.

    As they will discover when it leaves. London will be a hollow shell, so I guess that will give them great pleasure.

    Do you honestly think that the bankers will be paying their full 45% income tax on their bonuses, and using some avoidance or evasion scheme?
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    mountymounty Posts: 19,155
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    LakieLady wrote: »
    My SiL's house sale fell through last week. The purchaser was in banking, and they'd been told that their jobs were likely to transfer to Frankfurt because of Brexit. They didn't want to gamble on spending £2m on a house and then having to sell it for less in a year's time. Well, at least that's what they told the agent.

    Ironic really, as SiL and BiL both voted to leave. They're bloody livid now. And skint, as all their money was spent on redeveloping the house.

    This isn't sodding mumsnet!
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    San Fran SaraSan Fran Sara Posts: 834
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    LakieLady wrote: »
    My SiL's house sale fell through last week. The purchaser was in banking, and they'd been told that their jobs were likely to transfer to Frankfurt because of Brexit. They didn't want to gamble on spending £2m on a house and then having to sell it for less in a year's time. Well, at least that's what they told the agent.

    Ironic really, as SiL and BiL both voted to leave. They're bloody livid now. And skint, as all their money was spent on redeveloping the house.

    No sympathy to be honest, they likely bought the house to make money, they never saw it as a home I expect just something to throw money at hoping to sell for an obscene profit.

    Give them a bit of advice from DS, don't buy houses you cannot afford and throw heaps of money making it look gaudy.
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    QofShebaQofSheba Posts: 43,330
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    trevgo wrote: »
    Oh dear. Have you asked them whether they still call it "project fear"? Perhaps they'd like a second referendum.

    Only 3 replies to this thread which says it all. Nobody has sympathy for bankers or The City in general. They should do. It contributes massively to the nation's coffers. For every £1M bonus, the Treasury receives £450K. That pays for hospitals and schools in Burnley, Hull, Doncaster, Mythr Tydfil.

    As they will discover when it leaves. London will be a hollow shell, so I guess that will give them great pleasure.

    That is if don't split their earnings and pay themselves dividends into an off-shore account to avoid paying taxes, as many do, the same with footballers, tv personalities and many of the rich. Yes, I understand that it is legal, but it is wrong and immoral.

    And neither do banks pay their fair share in taxes.

    http://www.independent.co.uk/news/business/news/five-of-worlds-biggest-investment-banks-pay-no-uk-corporation-tax-a6783716.html
    “The tax receipts from these large financial institutions show what a charade their claim to pay their fair share has become,” said Labour MP John Mann, who serves on the Treasury Select Committee. “They rely on the taxpayer to underwrite their risk, yet they pay a minimal return back to the Exchequer.”
    JP Morgan, Bank of America Merrill Lynch, Deutsche Bank AG, Nomura Holding and Morgan Stanley all said their main UK arms paid no corporation tax. Along with Goldman Sachs and UBS AG that paid some corporation tax, the seven banks generated revenues of £20bn in the UK, profits of £3.5bn, employing 33,000 staff. They paid a combined total of £21m in corporation tax.
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    QofShebaQofSheba Posts: 43,330
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    ShaunIOW wrote: »
    Do you honestly think that the bankers will be paying their full 45% income tax on their bonuses, and using some avoidance or evasion scheme?

    Exactly.


    Bankers' bonus tax avoidance schemes so complex judges named them after Houdini are illegal, Supreme Court judges rule in a legal battle over bill worth £183MILLION
    http://www.dailymail.co.uk/news/article-3483942/Supreme-Court-judges-rule-against-Houdini-tax-avoidance-schemes.html
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    IWasBoredIWasBored Posts: 3,418
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    What shambolic?
    Iceland did not save its three largest banks because it simply did not have the capability to do so.

    Iceland at the peak of the crisis in 2008 had CPI inflation at 18.11% and interest rates to match at 18%. It had to impose capital control to prevent capital flight. And it needed to be bailI ed out by the IMF and other nations. And its recovery can be put down to devaluation of the Krona by about 60%, not good news for consumers particularly for the thousands in Iceland who had their mortgages in foreign currency.

    And its GDP today is still substantially lower than it was pre financial crisis.

    Iceland turned down an IMF loan twice, written off the debt, let the bankers take the hit and put them in jail along with their president
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    Sorcha_27Sorcha_27 Posts: 138,852
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    No sympathy to be honest, they likely bought the house to make money, they never saw it as a home I expect just something to throw money at hoping to sell for an obscene profit.

    Give them a bit of advice from DS, don't buy houses you cannot afford and throw heaps of money making it look gaudy.

    God forbid anyone wants to make a bit of money eh
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    B-29B-29 Posts: 2,291
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    Just watched finance commentator David Buick talking about this , he said that the European centres are tiny in comparison and many staff would not move there , some small companies would open new offices but as we are likely to make banking very favourable post Brexit he really didn't see London suffering.
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    clinchclinch Posts: 11,574
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    IWasBored wrote: »
    Iceland turned down an IMF loan twice, written off the debt, let the bankers take the hit and put them in jail along with their president

    Can we replace Mark Carney with a Viking, please.
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    Mr MoritzMr Moritz Posts: 3,865
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    Net Nut wrote: »
    Sadly the thing our country seems best at is watching while every sector that can make us money is destroyed, allowed to die, or moves abroad.

    No wonder the French and Germans aren't making a big thing of trying to persuade us to stay.
    We don't watch it, we actually encourage it and then say we're open for business and we all know what that means.

    I don't think some people realise how screwed our manufacturing base is, what needs to be done to turn things around and the inherent costs both financial and social.
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    trevgotrevgo Posts: 28,241
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    IWasBored wrote: »
    Iceland are a pillar of an example of how to deal with them

    Iceland has FOM with the EU.

    Happy with that?
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    trevgotrevgo Posts: 28,241
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    B-29 wrote: »
    Just watched finance commentator David Buick talking about this , he said that the European centres are tiny in comparison and many staff would not move there , some small companies would open new offices but as we are likely to make banking very favourable post Brexit he really didn't see London suffering.

    Buick is a red braced loony and always has been. Very successful but deluded. London is already suffering, although it's barely started. He has The City in his DNA and simply cannot imagine it's decline.

    Unless the passport is maintained, banks simply will not be able to serve the EU from London. Whether staff find the dining opportunities in Frankfurt poorer than London is utterly irrelevant.
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    BlairdennonBlairdennon Posts: 14,207
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    mungobrush wrote: »
    Do you actually have any idea what banks do?

    Every time a bank issues a credit card, or approves a mortgage, or makes a loan to a company for a business investment or issues a lease, they take a risk

    Banks are risk engines.

    You can read up on it in Banking 101.

    It would be nice if that was actually true, however they manage to lay off much of the risk that they take on to anyone else they can.
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    Mark_Jones9Mark_Jones9 Posts: 12,728
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    IWasBored wrote: »
    Iceland turned down an IMF loan twice, written off the debt, let the bankers take the hit and put them in jail along with their president
    Iceland applied for and received a bailout loan from the IMF and from other countries. The combined bailout loans received almost equalled Iceland's GDP and without the bailouts and capital restrictions their currency would have completely collapsed. Even with those measures their currency was devalued by 60%.

    Iceland forgave a part of the inflation linked debt owed by some mortgage payers by transferring the liability to the failed banks. It benefited about a quarter of the population by reducing their spiralling mortgage debt a bit.

    Iceland let its three largest banks fail because it could not save them not by choice. It was making plans to try and save them when they went bust. Iceland did attempt at great expense but failed to save smaller banks, but did manage to save building societies.

    Iceland sentenced some bankers, some to 4 and 5 years prison. It then sent them to low security prison and then changed the law so enabling them to be released after a year or less to serve the remainder of their sentences on electronic tag.
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    mooxmoox Posts: 18,880
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    mRebel wrote: »
    That's an interesting thought.

    The countries that are looking to take Britain's financial sector will hand out visas/work permits like sweets to the people who will make it happen.

    Ditto academia and everything else that the UK is choosing to put in danger
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    mooxmoox Posts: 18,880
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    God forbid anyone wants to make a bit of money eh

    Not when they're helping cause one of the largest crises that this country currently faces - a lack of affordable property. Especially in places like London, where even an unremarkable house could well be £2m in the right areas
    IWasBored wrote: »
    Iceland turned down an IMF loan twice, written off the debt, let the bankers take the hit and put them in jail along with their president

    It also decided that the promises it made to British and Dutch savers (similar to our FSCS) weren't going to be fulfilled. Then they got the faux outrage flowing when the UK used an "anti terrorism" law to freeze assets. The full story, of course, was that the law included but was not limited to anti terrorism measures
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    mungobrushmungobrush Posts: 9,332
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    clinch wrote: »
    Can we replace Mark Carney with a Viking, please.

    Ah yes those Icelandic banks that almost bankrupted so many UK councils

    What a shining example of financial prudence they are
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    tiggertinytiggertiny Posts: 5,361
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    I feel sorry for the bankers and their terrible predicament and suggest they indulge in a mass suicide by jumping off one of those tall ugly office blocks in "the City".

    That together with our success at the Olympics would help make up for the dismal summer we have had.
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    mungobrushmungobrush Posts: 9,332
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    clinch wrote: »
    Can we replace Mark Carney with a Viking, please.

    One of these Vikings perhaps?

    "Lost in Iceland: £1 billion from councils, charities and police
    • More than 100 public bodies had money in collapsed banks
    • Brown accuses Icelandic authorities of acting illegally
    Icelandic banknotes
    Iceland has failed to guarantee British savings in its failed banks.

    Gordon Brown last night branded Iceland's failure to guarantee British savings in its failed banks as "totally unacceptable and illegal", amid warnings that more than 100 local councils, police authorities and fire services have up to £1bn lost in its bankrupted system.

    Charities, including children's hospices, warned they were at risk of losing £25m.

    In unusually aggressive terms, the prime minister said he was willing to use anti-terrorism legislation to freeze the assets of other Icelandic companies operating in Britain in an effort to recoup the lost money. The extent of the potential difficulties for councils and other bodies began to emerge yesterday as more and more said they had invested money in Iceland's high-yielding savers' accounts.

    By yesterday evening, the Local Government Association (LGA) had accumulated reports showing that 108 councils in England, Scotland and Wales had deposited £798.95m in Icelandic banks.

    With no sign of Iceland being able to repay the money and councils lobbying ministers for reassurance that the cash would be recovered, Britain went on the offensive. "What happened in Iceland is completely unacceptable," said Brown. "I've spoken to the Icelandic prime minister, I have told him this is effectively an illegal action that they have taken. We are freezing the assets of Icelandic companies in the UK where we can. We will take further action against the Icelandic authorities where necessary to recover the money."

    https://www.theguardian.com/business/2008/oct/10/banking-iceland
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    GibsonSGGibsonSG Posts: 23,681
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    LakieLady wrote: »
    My SiL's house sale fell through last week. The purchaser was in banking, and they'd been told that their jobs were likely to transfer to Frankfurt because of Brexit. They didn't want to gamble on spending £2m on a house and then having to sell it for less in a year's time. Well, at least that's what they told the agent.

    Ironic really, as SiL and BiL both voted to leave. They're bloody livid now. And skint, as all their money was spent on redeveloping the house.

    Thank you, I needed a good laugh even although it was at someone else's expense.
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    TeeGeeTeeGee Posts: 5,772
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    GibsonSG wrote: »
    Thank you, I needed a good laugh even although it was at someone else's expense.

    I wonder how much profit the couple did not make on a £2m house? Bankers and Londoners seem to have an expectation about financial life that is alien to most of us.

    I voted out (as I did in 1975) but I do like a bit of schadenfreude in the banking sector. :D

    P S Nobody had any problems working abroad before the EU what have they done to mess up up the system so badly?
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