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Banks grapple with big losses but still award huge bonuses

Worldfocus — Fri, 26 Feb 2010 19:20:45 +0000

An RBS branch in England. Photo: ITN

In the U.K., the Royal Bank of Scotland has become the leading symbol of the country’s banking crisis.

RBS announced more big losses this week yet still found room to award its employees almost $2.5 billion in bonuses. That has sparked a good deal of outrage.

The bank’s rationale for the bonuses is similar to what many U.S. banks have said to justify big payouts.

Are the bailed-out U.S. and U.K. banks irresponsible for paying such big bonuses while still holding such a tight squeeze on credit?

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The Royal Bank of Scotland has become the leading symbol of the U.K.’s banking crisis. RBS announced more big losses this week yet still found room to award its employees almost $2.5 billion in bonuses. That has sparked a good deal of outrage. The bank’s rationale for the bonuses is similar to what many U.S. banks have said to justify big payouts. http://worldfocus.org/files/2010/02/th_uk_rbs.jpg

An uneven global economy is cause for concern in 2010

Worldfocus — Fri, 23 Oct 2009 18:28:21 +0000

Roben Farzad, a senior writer for BusinessWeek, joins Daljit Dhaliwal to discuss the economic fluctuations in Britain, across Europe and elsewhere. He discusses the common experience shared by Britain and the U.S. and how the countries face identity crises in determining what they can do to dig out of the economic crisis. Farzad explains how the global economy is uneven, with the pockets of strengths and weaknesses, which will be cause for concern in 2010.

(View full post to see video) Roben Farzad of BusinessWeek discusses the economic fluctuations in Britain, across Europe and elsewhere. He explains how Britain and the UK face identity crises in determining what they can do to dig out of the economic crisis. http://worldfocus.org/files/2009/10/th_robenfarzad.jpg http://worldfocus.org/files/2009/10/th_robenfarzad.jpg

World markets rally in response to U.S. bank rescue plan

Worldfocus — Mon, 23 Mar 2009 18:55:11 +0000

On Monday, the financial world was largely focused on the Obama administration’s bank rescue plan, under which the government would offer subsidies to private investors who buy up trouble assets from banks, and taxpayers would share in any gains — or losses.

The president says he is “very confident” the plan would help to ease credit. The plan was greeted with enthusiasm on Wall Street, where the Dow and Nasdaq were up sharply, and major markets made big gains in Asia and Europe.

Peter Coy, economics editor of BusinessWeek magazine, joins Martin Savidge to discuss world stock markets, how Western European banks will be impacted by the plan and foreign banks being bailed out by U.S. taxpayers.

Peter Coy of BusinessWeek magazine discusses how major world markets responded to the Obama administration’s bank rescue plan and foreign banks being bailed out by U.S. taxpayers. /files/2009/03/th_econ_coy.jpg /files/2009/03/th_econ_coy.jpg

Citigroup bailout reverberates abroad

Worldfocus — Mon, 24 Nov 2008 18:29:33 +0000

After a meeting with Treasury Secretary Henry Paulson, President George W. Bush said that the U.S. will bail out Citigroup, one of the largest American banks.

Even as stock markets around the world shot up today, economic projections pointed downward in many countries, sparking skepticism about how long the Citigroup bounce might last.

Citigroup also has a huge international presence, with more than 200 million customer accounts in 106 countries.

Robert Lenzner, national editor of Forbes magazine, speaks with Martin Savidge about the repercussions of Citigroup’s fall, overseas faith in U.S. financial institutions and foreign banks that are also threatened.

Robert Lenzner of Forbes magazine discusses the U.S. bailout of Citigroup and the situation of foreign banks. /files/2008/11/th_br_lenzner.jpg /files/2008/11/th_br_lenzner.jpg

Asian markets realign with Western economies

Worldfocus — Tue, 16 Sep 2008 22:01:56 +0000

Jeff Sommer, Asia specialist and Sunday Business Editor of The New York Times, a Worldfocus partner, covers the Asian market’s struggle with the challenges faced by American and European banks.

New York Times editor describes the Asian market’s struggle with the challenges faced by American and European banks. /files/2008/09/th_vidcrosstalk_sommer1.jpg /files/2008/09/th_vidcrosstalk_sommer1.jpg