Lloyds Banking Group confirms bonus clawback
By ROBERT BARR
LONDON - Lloyds Banking Group has canceled bonus payments for its former chief executive and a dozen other directors over their involvement in the costly misselling of payment protection insurance.
Lloyds, struggling to emerge from part-nationalization, has set aside 3.2 billion pounds ($5.1 billion) to reimburse people persuaded to buy policies which they did not need. That's by far the biggest provision by any British bank.
Former CEO Eric Daniels will lose 40 percent of his bonus for 2010, Lloyds announced Monday, worth about 580,000 pounds ($920,000). The bank will withhold shares of that value which were part of his deferred bonus.
Four other directors would lose 25 percent of their bonuses, and eight senior executives would lose 10 percent, the bank said.
Montana-born Daniels, who stepped down a year ago, headed the bank when it took over Halifax/Bank of Scotland, a deal which loaded the company with bad loans and forced the government to intervene.
Lloyds would not confirm the names of the directors, but the Press Association news agency said they were outgoing finance director Tim Tookey, the head of wholesale banking Truett Tate, former retail banking chief Helen Weir and former head of insurance Archie Kane.
All face similar hits on deferred bonuses due for 2011, the bank said.
"The board wishes to emphasize that its decision is based entirely on the principle of 'accountability' and in no way on culpability or wrongdoing by the individuals concerned," Lloyds said.
Lloyds, which reports full-year results on Friday, has been under pressure to cut costs and improve its image after it was ordered, along with several other British lenders, to refund customers for payment protection insurance. A court rejected bankers' claims that the rules on the insurance should not be applied retrospectively.
The financial crisis has focussed political and public anger on bonuses, particularly at Lloyds, where taxpayers took a 41 percent stake to save the company, and Royal Bank of Scotland where the public stake is twice as large.
RBS Chief Executive bowed to pressure and refused his 2011 share bonus worth 963,000 pounds. Lloyds new chief executive, Antonio Horta-Osorio, has already said he won't take a bonus for the year.
Barclays PLC, which reported results on Feb. 10, said it was cutting its bonus pool by 25 percent after its net profit for 2011 fell by 15 percent to 3 billion pounds.
Meanwhile, the Financial Services Authority said Monday that it had fined Banco Santander 1.5 million pounds for failing to promptly clarify information on compensation available to investors in certain structured products. The regulator said customers began raising questions in 2008 but Santander did not clarify the position until early in 2010.
None of Santander's customers had lost money because of the lapse, the FSA added.
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Read More»Obama: Keep jobs in U.S.
By Jack Torry and Jessica Wehrman, Hamilton JournalNews, Ohio
Jan. 25--WASHINGTON -- Calling it "the defining issue of our time,'' President Barack Obama Tuesday urged that America keep alive the promise from the past of an economic system "where everyone gets a fair shot'' and "everyone plays by the same set of rules.''
Delivering his third State of the Union address against the backdrop of what is expected to be a divisive presidential election, Obama told lawmakers that he wanted to "apply the same rules from top-to-bottom: No bailouts, no handouts and no copouts.''
"We can either settle for a country where a shrinking number of people do really well while a growing number of Americans barely get by,'' Obama said. "Or we can restore an economy where everyone gets a fair shot, everyone gets their fair share, and everyone plays by the same set of rules.''
In the Republican rebuttal, Indiana Gov. Mitch Daniels said that "no feature of the Obama presidency has been sadder than its constant efforts to divide us, to curry favor with some Americans by castigating others.''
With his speech, Obama laid out his legislative agenda for the year. But he also attempted to frame the November election as a choice between economic fairness for the middle class or a system which he argued has allowed a small group of Americans to accumulate a greater share of the national wealth.
With the national unemployment rate hovering at 8.5 percent, Obama enters this election year with 44 percent of American voters approving of his performance, according to a Gallup Poll released yesterday.
But at the same time, Americans harbor far greater disapproval of the Republican-controlled House and the Democratic-controlled Senate, with a CBS News/New York Times poll last week showing that just 13 percent of voters approve of the job of Congress.
In addition, Republicans are engaged in a divisive presidential primary between former Massachusetts Gov. Mitt Romney and former House Speaker Newt Gingrich.
Obama outlined a handful of proposals that he called on Congress to pass, including a one-year, $160 billion cut in the Social Security payroll tax for middle-income Americans. He called for assistance to small companies through fewer regulations and expanded tax relief.
Read More»Where’s the Customer Retention?
I've been with the same phone company for 8 years. My phone bill typically runs around $100 to $125 for my outdated phone, so when my “free” upgrade came around I looked into my options. I found out that my alleged “free” upgrade was going to cost me around $180 if I wanted something better than the outdated phone I already had ($150 for a 3 year contract, plus another $30 to hook it up).
To avoid a new contract, I took up an offer on a free phone given to me by a family member, that cost me $20 to hook up. There was a glitch with it, so I sent it away to be assessed and was charged $30 that would be only be returned if the glitch was something covered under warranty.
The assessment then comes back as water damage (of course); therefore, the $30 will not be returned to me whether I choose to let them continue to fix it or not. I then get a quote of $100 to fix my phone (that is covered by an extended warranty, by the way). If I choose to not pay the $100 to fix it, my only other option is to start a new contract and get a new phone as mentioned above.
So either way; they’ve got me. There really are no free upgrades or free phones, even when you’ve been with the same company for years. Do you know what’s sad? If you switch to a new company you have better chances of a) a good plan, b) a free phone, or c) both.
Can we say “time for a new phone company?”
Read More»Easter Candy 101
Easter brings us back to the unadulterated fun of childhood, back when mom organized the neighborhood Easter egg hunt, and candy was as abundant as during Halloween. From the peeps that turn you tongue bright yellow, to hot cross buns and hollow chocolate eggs, they all pop up this time of year. But just what is the history of these delectable favorites that have become a staple in the world of Easter candy? Let's take a look.
Back in 1361, Father Thomas Rockcliffe, a monk at St. Albans, started giving out hot cross buns to the poor on Good Friday. He had no idea he was officially beginning the tradition of sweets being associated with this religious holiday.
Hot cross buns were actually begun as a pagan tradition, wherein the cross was associated with the four quarters of the moon. However, Rockcliffe took the design and associated it with the cross of Jesus, translating the pagan symbol into something palatable for the Christians. Because of this nefarious origin, however, in the 16th century Queen Elizabeth banned the consumption of the bun except at Easter. Thus the first official Easter sweet was born.
The pretzel was another early food to be associated with Easter eating. Although not a sweet treat, the shape and twist of the pretzel representing arms crossed in prayer.
In the 1800s, chocolate had become all the rage in Europe, and chocolatiers looked for shapes and sizes to create treats that could be associated with various holidays. The chocolate egg was born, originating again from pagan traditions that represent rebirth. Christians adapted this symbol to correlate with the crucifixion, as well as the stone that was rolled away from the tomb. At this time, the egg was popular in Germany and France, and eventually spread throughout all of Europe.
These first eggs were made solid, but soon the hollow egg was born. This was a laborious process, as the use of modern chocolate was not around, and a heavy paste of cocoa powder was used. By the early 20th century, modern chocolate making processes had evolved greatly, and chocolate eggs were mass produced. By the 1960s, chocolate eggs had become a universal symbol of Easter, as well as their counterpart the chocolate bunny.
Jelly Beans are perhaps the number one candy associated with Easter. These tiny treats are believed to have evolved from something called a Turkish Delight, which was sold in glass jars on the counters of stores nationwide. Shaped like little eggs, jelly beans were first associated with the Easter bunny, which rose to fame during the Civil War as a bearer of good tidings of Spring, delivering eggs as a sign of rebirth.
Whether celebrating Easter as a religious holiday or pagan tradition, everyone can agree this is a time for celebration, rebirth and fresh new beginnings. What better way to celebrate the happiness of a new start that with the sweet treats that reminds us of those happier times of youth? Regardless of your reasons for indulging, nothing says innocence like an Easter basket filled with jelly beans, marshmallow peeps and chocolate bunnies to bring a smile to your heart. Read More»
Simple Easter Decorating Ideas
Looking for some fun, creative decorating ideas for Easter? Let us show you some simple, fun and colorful ways to celebrate this holiday known for chocolate eggs, the Easter bunny and the arrival of Springtime. Who doesn't love a good Easter egg hunt? Hiding eggs and candy for children to discover is a great way to spend time with family. Creating Easter baskets is an art itself. Why stick to traditional jelly beans and marshmallow peeps? Bake cupcakes and decorate them with rabbits, eggs and jelly beans. Not only will they make great basket fillers, they are convenient for your child's school parties.
While you are baking, consider creating an Easter bunny cake. Using two 9-inch round cake pans, bake your favorite cake. After cooling, center on the cakes on a cookie sheet. To create the ears, take the other cake and cut two ears, to be placed next to the first cake. Using white icing, bring all the parts together and use jelly beans for the face, as well as strings of licorice for the bunny's whiskers.
Decorating eggs is a long held tradition. You can purchase decoration kits and adapt the design to your choosing. Kids love to draw with crayons, so even if you forgo the traditional egg dipped in dye, you can still have fun coloring with your kids on hard boiled eggs. Stickers can be added, and designs can be as intricate as can be imagined.
Or how about baking the Easter basket itself? Bake the cake in a bowel, and once cooled, scoop out the middle, line the bottom of the "bowl" with coconut and make a handle using ribbons and pipe cleaners. Fill the basket with jelly beans, chocolate eggs or any other of your favorite Easter treats.
Flowers are another way of bringing Easter to life. Tulips, hyacinth and primroses are traditional Easter flowers, as are lilies. Buy crocus or tulip bulbs planted in pots, and fill the top of the pots with Easter grass or moss. Arrangements of tulips and lilies around the house brighten up the place and remind us of the rebirth of the season. Or buy individual pots and plant the bulbs yourself. As they spring to life, remember that after Easter you can replant them in your garden, where they will become perennial fixtures.
Table settings are a great place to create ingenious Easter decorations. Place mats, napkins, table cloths and runners can be Spring prints or colors, or display Easter themes. Always use your best cutlery and china to set a cheerful table filled with reminders of the season.
Another easy table decoration is colorful pastel place cards. Use heavy card stock, and surround the card with designer jelly beans or chocolate bunny eggs. Tiny baskets like those found at hobby stores can be filled with dyed eggs and Easter grass for a fun accent.
Decorating for Easter is easy, fun and colorful. Use your imagination and enjoy the season! Read More»
Origins Of April Fool’s Day
This Is No Joke!
Who doesn't love April Fool's Day? What better holiday than one that gives people permission to instigate practical jokes with varying levels of complexities on family and friends? A holiday dedicated to embarrassing stunts and tricks pulled on the unsuspecting, does indeed deserve its own day. No one actually knows the real origins of April Fool's Day. Some believe that it began when Christian culture changed from the Julian calendar to the Gregorian one.
In the Julian calendar, May 1 was designed as the first day of summer. Someone could have changed this date to April 1 when the calendars were switched.
Many believe April 1 was assigned as the first day of the year, and when King Charles of France changed this day to January 1, many continue to celebrate New Year’s on April 1.
Other theories take us back to Noah's Arc, when Noah released the dove too early. Still others trace it back to Canterbury Tales, when a tale of two fools was featured in a story that took place in March.
In Rome a similar day was designated in the 18th century when men were encouraged to put on disguises that would change their looks in order to approach a woman to ask for her hand in marriage. At this time in history it was actually celebrated in February as a day to bring new happiness into a girl's life.
Some great April Fool's pranks have been perpetrated throughout history. On this day in 2008, a prankster at Brigham Young University put out a notice that all dorms would be torn down and that April 1 was the day designated for imploding the buildings. Although hundreds stood around all day waiting to see this feat, nothing took place and the prankster was never identified.
Back in 1957, the BBC aired a program called Panorama which showed pictures of Italians out in the fields harvesting spaghetti from a special strain of tree. They happily declared that they had successfully destroyed that last of the dreaded spaghetti weevil. The BBC was inundated with calls asking where to get the tree.
Taco Bell pulled a fast one when in 1996 they ran a full-page ad in The New York Times declaring that corporate headquarters had bought the Liberty Bell which was to be renamed the "Taco Liberty Bell." Even the White House was in on the joke. When then-press secretary Mike McCurry responded to an inquiry about the sale, with a dead pan look he told the reporter it was true, and added that in following suit, the US Government had just sold the Lincoln Memorial was being renamed the Lincoln Mercury Memorial.
Following suit, in 1998 Burger King placed their ad in USA Today, proclaiming the invention of what they called the "Left-handed Whopper" especially and scientifically designed for condiments to drip off the right side. Because of this, all day that April 1, customers ordered both the left-handed and right-handed burgers. Read More»