UK 20:52 Sunday, 4 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
So Douglas Flint, the chairman of HSBC (HSBA) was pulled before a House of Lords committee to talk about the bonus cap enforced by the European Union. He didn’t like it: "We're an industry that's well paid but so are other industries. When you ask someone in the technology industry to join for cyber risk and say 'you'll be paid in seven years' they'll decline to consider it."
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Comments
Jimbo
My own expectations about who should lose what in the event of a bank collapse are very simple. Shareholders and Bondholders should lose their investment. Depositors should be guaranteed to the tune of the FSCS. You could argue the taxpayer is getting hit in the case of the latter, but at least the compensation cap limits the full severity of the potential hit, and if the QE spigots could be turned on to save the Banking System, they can also be turned on to ‘save’ Despositors – even if this means some currency devaluation. I’d agree with Douglas Flint that Society would bear the pain come what may, but I would much rather bear the pain of sending a message to any bank that if you screw up, you will be allowed to fail, than take on the moral hazard of Joe Taxpayer taking on the tremendous (albeit QE-fueled) debt burden of bailing out the feckless only to see them have another go at screwing up in an even bigger way in the future. End of rant.