Theoretically Banks are controlled by their shareholders, but this is shrouded by more imperial considerations !!!
Government regulations and Central Bank rules, very simply said, greatly limit the independence of Directors who are coerced to follow the official "will".
The rules and controles in countries can vary greatly (e.g. in France and Britain) but it is clear that Banks should be rescued from bankruptcy if losses have been provoked by "Official Government Orders".
What cannot, or should never be covered are losses from "losing bets" by Hedge Funds or Individual Speculators. These operations are not "traditional banking investment operations" thus banks must control their "market operators" and gracefully accept to report any losses. In fact, they never bleat when there are big profits !!! They say nothing !!!
Shareholders are however, excluded from many decisions concerning the abnormally high remuneration of Directors and Managers !!!
This is where Governments in fact, refuse to legislate !!! Shareholders' rights are not protected !!! There is never really any opportune moment for them to change any decision in this area !!! At the Annual General Meeting it is clearly much too late. This same situation exists in other sectors of operations.
Bonuses paid to some people, when the figure "gets out", are sometimes stupendously big !!! They are out of all proportion to what any shareholder might ever have imagined or expected !!!
Should all such "exceptional" payments not be based on a contract, officially filed when some one is engaged, and which is submitted to a vote or "explanation" at the AGM ? Should shareholders not have a chance to be heard and to vote ?
This concerns Banks but also other companies !!! The Government must act !!!
No comments:
Post a Comment