Scopulus Business Newsletter - 09-02-09
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In this issue we have:
Articles - watch
Now that the Royal Bank of Scotland is about 70% owned by the government we can
definitely expect change. The question is what does the government know
about banking? We know that the economy is in unchartered waters but can we
expect reasonableness’ from our politicians.
The point in question is all this talk about bonuses concerning the banks.
Bottom line if they talk about breaching peoples contracts just because of
public opinion (which may be justified) they may have to think again, after
all, the whole banking system and our market system is based on trust,
contracts and agreements. Breaching contracts may be negligent and will send
out the wrong message which will mean recovery will be slow. If someone has
earned a bonus (I use the term “earned” loosely) and has fulfilled their
contractual side of the agreement then even if the business does not make a
profit they are still obliged to be paid. Surely these contracts were declared
and agreed by the then shareholders.
On the other hand if its not contractual then there is no obligation and
decisions have to be made especially when most of the banks have in part
failed not only themselves, the economy but you and me.
So let’s get back to reasonableness. What is reasonable? Yes, there is an out
cry about certain individuals getting what is being called "bonuses for
failure", but any sensible person would be able to work out that this is
simply not the case. There is no way they have been offered a bonus for the
business failing. The bonuses would no doubt have been bigger if mistakes
were not made. But public opinion does have sway, even if it is based on
hysteria. So reasonableness will have to mean compromise. So what should the
compromise be? 1) They can ask the bosses who’s bonuses are contractual to
agree to a delay in the paying of those bonuses based on the current position
of the bank, and agree to pay them the money when the business picks up
and/or maybe over a period of a few years into recovery. 2) Similarly, they
can ask them to take "x" amount of it in the form of shares perhaps even over
a number of years to ease the current cash flow issues in this economic
climate and to share in the fortunes of other investors.
What ever they decide it will make a difference to all of us now and in the
future. Consider, trust and confidence is what makes or breaks business,
markets and economies.
See below an article about child trust funds and how you can
get an extra £250 and tax free interest for your young children. Quite important
and is a basic provision.
Everybody’s first impression is based on how you look and
what you wear. So is it too much of an effort to make an effort, and does it
really matter. Forget that the statistics tell us it is. You already know it.
If you are in a business partnership then you must have a
partnership agreement or the law will dictate the terms of the partnership.
If you want to protect what you have, then agree in writing and all parties
will be protected..
What is “Personal data”? The Information Commissioner's
Office (ICO) has published guidance to help institutions decide whether data
falls within the ICO’s definition of personal data if you are not sure. You can
Articles - watch
If you don’t ask the right questions you wont get the right
answers. Have a read.
Asking the Right Questions
If you have young children or have just had a child then this may be something
Four millionth Child Trust Fund milestone reached
We have added a new heading in the useful tools section,
Dictionary/Translators. Some have sound definitions as well as written
translations and pronunciations of the word so you can even learn how to say the
word properly. Amazing! Excellent tools to use if you want to learn the
basics. Click here.
The Scopulus Articles Team
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Article Published/Sorted/Amended on Scopulus 2009-02-10 12:03:59 in Newsletter