As fines and scandals continue to hit the banking sector HSBC has warned that it will take “a generation” before the banks are trusted again by their customers.
The warning has been sounded by Antonio Simoes, head of HSBC in the UK.
Meanwhile, amid consumer recognition that high bonuses and greed in the sector were responsible for the stupid risks taken that resulted in banks being bailed out by the British taxpayer, Royal Bank of Scotland has announced that its chief executive Ross McEwan will receive a bonus of shares worth £2.7million. And chief executive of Lloyds, Antonio Horta-Osorio will get shares worth £3.7 million.
Over at UBS and Deutsche Bank the two investment giants have been criticised by the supreme court for running “artificial” share schemes a decade ago that were an artifice using offshore companies to avoid paying tax on high bonuses paid to staff. The court ruled that both banks must pay HMRC the tax due on the amounts, said to run into tens of millions. There are now concerns in banking circles that the ruling could affect the tax status of many other bonus schemes and artifices used by the banks over the last ten years to avoid paying their fair share of tax.
Sounds like “a generation” might be pure optimism.