Time for a Culture Shift Short Cuts News Review Special Focus Iboa N
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AUGUST 2011 TIME FOR A CULTURE SHIFT SHORT CUTS NEWS REVIEW SPECIAL FOCUS IBOA N TAX THE RICH RING-FENCING NEWS REVIEW • Toxic media hysteria Billionaire financier, Warren UK banks are anxiously awaiting • Ratings agencies under fire Buffett, has urged the US the publication of the final • Call centre operations in administration to stop molly- report of the Government- India to be reviewed direct coddling the mega-rich with appointed Independent Banking • Business customers’ bank- over-generous tax breaks while Commission headed by Sir John ing wish list squeezing the less well-off. Vickers. • Controversy over salary cap See Page 4 See Page 7 See Pages 10-17 HIGH STAKES BANK CHIEFS SPECIAL FOCUS • From counter to culture While former HBOS Chief Exec- IN DENIAL • Changing your career www boa org uk shorts utive, Andy Hornby, has just been • Survey: culture of banking appointed to head the Coral’s British banking leaders remain must change gaming chain, the Former Ulster desperately slow to understand • Safety focus: stress Bank chief, Cormac McCarthy has the need for a major change in • Safety focus: burn-out joined the Paddy Power board. the culture of their industry. from boredom See Page 6 See Page 8 See Pages 18-27 www boa e Spectrum is published by IBOA – The Finance Union, IBOA House, Stephen Street Upper, Dublin 8 and 29, Malone Road, Belfast. BT9 6RU. Telephone: 00353-1-4755908 and 0044-28-90200130 [email protected] www.iboa.ie www.iboa.org.uk General Secretary: Larry Broderick HAND OF GOD IBOA NEWS Honorary Secretary: Tommy Kennedy • IBOA leaner but keener Communications Manager: Séamas Sheils Keeping his head while all about • Training for a change him lose theirs, Bank of England • Union mourns death of Advertising enquiries to Anna O’Doherty boss, Mervyn King, draws on heroic activist or Louise O’Donnell in IBOA House. soccer analogies to explain the • Sports & social: upcoming Spectrum is printed on recycled paper and wrapped bank’s approach to interest rate • Meeting Mr. Tayto! for posting in oxy-degradable poly thene at W & G Baird, policies. • Building the Union BOA THE F THE UN NANCE BOA ON Antrim, Northern Ireland. See Page 9 See Pages 28-37 2 SPECTRUM august/september 2011 NEWS WORK AGENDA LIFE & STYLE ARTS & LEISURE WORK AGENDA • Anglo restructuring • NIB job security pledge • Talks under way at Northern Bank • Major review at Ulster Bank • BOI wins bew investment • AIB staff still waiting See Pages 38-45 British banking group, Lloyds, has recently announced a further 15,000 more redundancies. Job cuts – order of day LIFE & STYLE • Swipe for cash • Fashion victims across banking sector • Exercise for kids www boa org uk • Menus to count calories? The retrenchment of Irish banking is begin- installed Chief Executive is currently finalising • Fitter or fatter: energy ning to gather pace. The catalogue of failure a further operational review. drinks in the dock already includes almost 1,000 job losses in Meanwhile, of course, IBOA members in • Nike: just pay it! Ulster Bank, 750 redundancies generated by AIB Group still anxiously await details of the See Pages 46-53 the closure of Halifax (and a similar number restructuring plan which is intended to seek to be lost when Bank of Scotland Ireland around 2,000 job cuts. eventually winds down), 150 redundancies in Developments in Ireland reflect significant National Irish Bank and a restructuring agree- job cuts on the international stage. HSBC has ment to cut 750 jobs across the Bank of Ire- just announced a plan to cut 30,000 jobs by land Group. 2015 – while Lloyds Banking Group is seeking www boa e Staff in the recently merged Anglo Irish 15,000 more redundancies – bringing its jobs Bank-INBS institution are now digesting the toll to over 40,000 since the crisis began. implications of their management’s proposals UBS wants 5,000 job losses from their to reduce employment by a further 350 as the global operations while Credit Suisse has also wind-down process continues. announced 2,000 cuts. Bank of America is In addition to these job cuts, up to 4,000 now seeking 5,000 job losses world-wide. posts that have been extinguished in Irish Reported cuts of 200 posts at RBS seem quite banking as a result of non-replacement of modest in comparison. ARTS & LEISURE staff on retirement or resignation and the Meanwhile, Goldman Sachs is reported to • Film: Monkey see, monkey non-renewal of contracts for temporary staff. be seeking a further 1,000 redundancies after do! At the same time, Northern Bank has the purging of 5% of its traders in March, • Will Adele get the Elbow? opened talks with IBOA on a Transformation while Morgan Stanley is also expected to • Sport: All Black to the Future Programme while Ulster Bank’s recently announce job reductions shortly. • Crossword, Sudoku, Picture Board Cover Picture: Crann an Oir - The Tree of Gold at the Central Bank in Dublin. The sculptor, Eamon O’Doherty, who • UltraViolet was also responsible for the Anna Livia Fountain and the statue of James Connolly at Beresford Place in Dublin, See Pages 54-63 died in August. F THE UN NANCE BOA ON august/september 2011 SPECTRUM 3 SHORT CUTS NEWS REVIEW SPECIAL FOCUS IBOA N Billionaire Wizards of Oz? Australia’s larger banks are now rated as some of the most profitable in the world, financier according to the annual report of the Bank of International Settlements. Australian banks have wants more achieved wider profit margins than any institutions of similar wealth taxes size in other countries. RBS faces two Billionaire financier, Warren Buffett, who has been acclaimed as the third richest law-suits in US individual in the world, has called on the US Government to stop mollycoddling the RBS faces two lawsuits in the “mega rich” like himself and to introduce US seeking damages of over fair taxation. Warren Buffett $1 billion for allegedly mis- Calculating his personal Buffett’s latest interven- majority in the US House of leading credit unions over effective tax rate at 17.4% – tion follows the recent bitter Representatives – fired up by bonds backed by “liar’s loans.” compared to 33% to 41% political wrangling in the US the ideological dogmatism of The latest suit –filed in a Los for many of his employees at Congress over tackling the the Tea Party – are resolutely Angeles court last month by the Berkshire Hathaway finance debt issue – which resulted in opposed to any increases in National Credit Union Adminis- house – Buffett has called on the downgrading of the US’s taxation – preferring instead tration over the sale of mort- the US political establishment AAA rating by Standard and to introduce substantial cuts gage bonds to Westcorp Credit to “get serious about shared Poors. in State expenditure on health Union – alleges that the loans featured “systemic” misrepre- sacrifice.” While commentators in and education. sentations about borrowers’ He said that the mega Europe have pointed out Critics of this approach – incomes, debt and equity. rich would not mind being that if European style rates of including Buffett – believe it is A similar suit was filed told to pay more in taxes personal taxation were intro- unfair to foist America’s debt against RBS a month earlier “particularly when so many of duced in the US, the debt burden on the most vulner- over losses incurred by the US their fellow citizens are truly problem could be quickly able while the rich get off Central Corporate Credit Union www boa org uk suffering.” resolved, the Republican “scot free.” in Kansas. CHAPTERS Half pay bills late every BOOKSTORE Parnell Street Dublin 1 month in Republic –survey Nearly half of people in the Irish a future for themselves or their families www boa e Republic are late paying at least in Ireland. one bill every month, according to 82% of the same group say they do 10% a survey undertaken by the Irish not think they will be able to cope with League of Credit Unions. any further changes to social welfare rates discount The survey was con- or income tax. ducted for the League’s 210,000 people The survey took place after for IBOA second disposable income unable to pay the European Central Bank’s tracker index of 2011, entitled interest rate rise in April but members What's Left?, which aims to essential bills before the rate rise in July. assess levels of disposable Those surveyed were asked income, patterns of expenditure and how a further interest rate rise would the financial hardships facing people in affect them – with 21% saying it would Show your IBOA Ireland. have a serious impact on their ability to According to the survey, of those meet bills. membership card who have less than 5% of their income 6% said they could not pay their at the pay point left after essential bills are paid, a mortgage and utility bills if there was a staggering 45% said they no longer see further rate rise. BOA THE F THE UN NANCE BOA ON 4 SPECTRUM august/september 2011 NEWS WORK AGENDA LIFE & STYLE ARTS & LEISURE RBS Americas Headquarters in Stamford, Connecticut. MBNA disposal puts 5,000 jobs at risk Up to 1,000 jobs are at risk in Ireland with another 4,000 in Britain following the recent decision by Bank of America to dispose of its MBNA credit card business based in Carrick-on-Shannon and Chester. As MBNA is reputedly the biggest credit card operator in Europe – with £11.6bn in loans through its own card as well numerous affinity cards supplied to charities, sports clubs and other bodies – it is expected that Bank of America will have no difficulty in finding a buyer.