In the recent Downturn should cash lenders be asked to give back thier Bonus its thier lies that got us here?

Question

In the recent Downturn should cash lenders be asked to give back thier Bonus its thier lies that got us here?

Answer 1

You have a very good point there. It's like giving bonuses to salesmen on the basis of sales, and not sales actually paid for. Result, they will sell to anyone, because there is every incentive to do so, and no penalties.

Any bonuses should be released as and when loans are repaid. Unfortunately, bonuses can't now be legally reclaimed. It is the fault of the lending institutions hierarchy for setting up illogical bonus schemes. However, when you consider that the directors are generally large shareholders as well, (Northern Rock) they will have bailed out and made large amounts of money as well. A conspiracy.

What about Government regulators? They failed miserably as well.

Answer 2

In every economic situation, there are winners and losers. The winners get their bonus and they celebrate, the losers gets the credit crunch! Thats the name of the game.

Answer 3

Sorry.

I know that you're joking, but I don't really get it.

If you were awarded a bonus, and the business you were in fell on hard times subsequently, would you give it back?

I thought not.

Answer 4

~~Everyone who knowingly made fraudulent loans should have to sell their assets and return all the funds they can raise (including their cash worth), as well as serve time for their crimes against society. It's outrageous the taxpayers have to pay for all these CEO's and other people who made so much money from these horrible loans, and they walk away free! We pay and pay. This is why it's imperative to get these Republicans out of office. They support white collar crime, and leave the mess to the taxpayers to cover!~~

Answer 5

Amazing how often the lender gets blamed for the borrowers insolvency ... in the past it was always '3rd world debt' ... now it's (US) 'sub-prime loans' and 'excessive Credit Card debt'

Fact is, people have borrowed money that they couldn't really afford to pay back ... in the UK, TV programs have been made about Credit Card 'junkies', up to their eyes in debt and STILL borrowing money to live a life style well beyond their income .... OK, so the lenders encouraged it, however that's what they were paid to do ..

Individuals have to take some responsibility for their own actions .. 'we' are like kids who demand 'sweeties today' and offer to pay from 'tomorrow's allowance' ..

Well, 'tomorrow' has arrived .. and now the children are crying "it's all unfair" and want to blame their parents ..