Boris: Stop neo-socialist whingeing about City bankers and house prices
Pippa Crerar, City Hall Editor23.09.08
Boris Johnson today risked angering thousands of Londoners struggling to cope during the economic crisis by defending wealthy bankers.
The Mayor said that banking was one of the few global industries in which the capital "truly excelled" and suggested that people should stop "whingeing" about house prices boosted by City bonuses.
He wrote in the Daily Telegraph: "There are some strong feelings out there: Schadenfreude at the bankers who have been punished, indignation at those who have not.
"Which is why it is time to enter a note of defence of the banks, the City and the general practice of lending money for profit."
Mr Johnson - who earns more than £100,000 in his position as Mayor and £250,000 for his newspaper column - has opened himself up to accusations of being out of touch with normal Londoners struggling to cope with mortgage payments, and the rising cost of living in the capital.
But he warned the City should not be "shackled" by regulations suggested by the Government to curb similar future excesses.
He conceded his remarks would be "unpopular" and that the banks had on occasion been "hideously greedy". But he added: "Before you attack the bankers of London, remember that this is one of the few global industries in which we truly excel; the City contributes about nine per cent of Britain's GDP.
"And before you go whingeing to me about house prices boosted by City bonuses, whatever the disasters of the sub-prime sector, these products allowed millions of Americans to own their own homes," he continued.
"Of course there are spivs and speculators out there but before we get carried away with neosocialist claptrap, we should remember the huge benefits brought to this country by bankers and the City of London."
Reader views (59)
All these 'weekend socialists' from wealthy families should shut up and live in the real world outside of universities and orgy communes. The world an evil place and thats the way its always been so get on with it and do some work.
- Tom, Winchester,
It's time Boris remembered he is supposed to be representing all Londoners, the neo-socialists as he calls them, whose views he regards as 'claptrap', as well as the rightwing Tories with whom he identifies and whose views he regards as sacrosanct.
- Val Daniels, Mijas Costa. Spain
"And before you go whingeing to me about house prices boosted by City bonuses, whatever the disasters of the sub-prime sector, these products allowed millions of Americans to own their own homes,"
Lovely bit of joined up thinking, Boris. So all of those hard-working Londoners that feel put out because, despite earning good salaries, they still can't afford a decent home are 'whingers' who should be grateful that our financial masters made such ludicrous profits by providing houses for...wait for it... Americans.
The biggest kick in the pants though is that whilst huge numbers of Americans who were sold these mortgages are now being forced to foreclose and lose their homes the blaggards who sold them and conspired to obscure the evidence are walking away with vast bonuses. Meanwhile the losses incurred when the game finally was up are being covered by taxpayers on both sides of the Atlantic.
You'll forgive us if we don't organise a telethon in their names.
- Tobe, London, UK.
Capitalism has failed. Privatization has failed. The banks are being nationalized. What a bunch of bankers.
- Mick, London, England
Couldn't agree more with Boris. Forget bankers -- only a few of them earn massive salaries anyway, and they all pay huge amounts of tax. I'm more concerned about the legions of lazy, unproductive civil servants we all pay for (you only have to look at how many sick days these wasters take).
- Mark, London
Well said Boris. Leave the guy alone, he is not saying this from a political standpoint or his upbringing neither of which have anything to do with the current climate. Boris is saying this from a purely economical point of view, yes we 'envy' the bonuses these people get paid but look at what they do for London and for the whole U.K. Some legislation is good but don't crush them or they will just go abroad and take there clients, money, knowledge and skills with them. Boris makes a lot of sense when he speaks and it is only the narrow minded that can't see past there own political views and personal appearance prejudices’ that gives him a bad press. Well said mate.
- Andrew, London
Don't care how much they are paid.
Just annoyed when they make huge profits the banks get to keep them.
But when they lose huge sums and go bust we (taxpayers) have to bail them out.
- Terry, london
Bravo Boris! I am not your supporter but I like your frankness! People who complain that bankers earn too much just demonstrated how ignorant they are. Not every banker earn million(s), I work at a bank and earn no where even near £100k. I work an average of over 70 hours week (this is double the average working week of typical outside London worker). To those who complain, unless you have the qualification, ability to work under extremely stressful environment and the willingness to work long hours, you are not in the position to complain. We paid a lot more tax than the average tax payer in the UK. Tourism may contribute more to Gordon's coffer (I am not convinced), city workers will no doubt contribute the highest tax income per capita. We contribute in the demand of a lot of industries, to name a few, the cleaners, the dry cleaners, the restaurants, the travel agents. To wish for Gordon to tax us out of London is just wishing for a downward spiral for British economy. Financial services is the one great industry that we can still held our head high in the international stage, so get real and stop being a socialist. It is not just your aptitude, but your attitude that will bring you to your altitude! So if you want to earn as much as the average banker, then work for it. Otherwise please just stop whinging.
- Bank Worker, London
Ivor like most Tories failed to grasp what I said.
My Tax band was for 2nd or 3rd or additional jobs like Boris has writing for newspapers when he has a full time job (supposedly) as mayor. Someone with one job earning £10 million would still pay the same tax as now.
It is those who like Boris supplement an income of over £99,999 which would pay my 60% tax..Creating a fairer society for a fairer Britain.
Of course as one tory once said "There is no such thing as society" its no wonder that those who grew up with this idea have produced a generation with such little value for their or others lives! Thats the basis of Gun and Knife crime.
- Melvyn Windebank, Canvey Island, Essex
It's bankers greed that got us into this mess and it's the tax payer who will bail the banks out in the end. It sure as hell won't be the bankers The FSA appears impotent in dealing with this irresponsible lending and should be toughened up or replaced. All bankers are interested is the immediate and the very short term. Medium and long term are dirty words. Those who gained from destabilising the markets should be punished and their sharp practice should be outlawed. As for Boris' comments, I am hardly surprised. He's the biggest merchant banker of the lot!
- Bruce Edwards, London
Again Boris rises above cheap political shots and states the truth. I really wish Cameron would find his tongue and start telling us what he is about. The country is ready for change and there is now no need to court the Guardian reading socialists who have created a benefit culture. Stand up and tell us what your about!! If not stand aside at let Boris have a go.
- Harry, Derbyshire, UK
Congratulations James Hennessy, on your tired little class-war (yawn) rant about Boris.
Speaking of neo-socialist claptrap... May I ask, how Boris can be “echoing the editorial policy” at the Torygraph (by defending the greedy)... when “even they felt it wasn't quite the right time to defend the greedy”...?
One might also wonder if Boris is an "incompetent foot-in-the mouth bonehead", what does that make your guy? Who lost to him. Badly.
Oh, and all us folk in inner city London are happy too. Thanks for caring.
- Ed Burke, London
"He believes in haves, not have nots". I should hope so too. The socialist mantra that You shouldn't have more than Me, is a recipe for economic and industrial failure. It is what Splash Gordon believes, as he thinks that those who have not should be financed by those who have. Is it not better to focus on creating more haves?
- Coylum, Vancouver, Canada
TO Leah, London, Robert Marshall, London, James, New Malden Et al.
Do you honestly believe that this excuse for a Government is Socialist?
Why?, Because it calls itself "Labour"?
If they are Socialist then why did it pursue a "light touch" regulation policy towards the City, more or less giving the banks a free reign?
Why did it allow the bonus culture that prevailed in the City develop unhindered?
Why did it give generous tax breaks to high earners from the City (Esp. non-doms)?
Where was the mass Nationalisations?
The relaxation of anti-Trade Union laws?
PFI (Architect, Kenneth Clarke) Socialist?
Let's face it New "Labour" are just a lighter shade of blue aren't they?
And the economic mess (and the out of control HPI of the last ten years), isn't down to Socialism is it, it's down to the very Tory, unbridled greed of the City, isn't it?
So what does this country look like it's going to do?
Elect another shade of Blue!
Great!
And if Liberal Social Democracy is such a failure then how do you explain the Scandinavian countries success and high standard of living?
- Owen, London
Im no socialist and couldnt abide Ken Livingstone - but Boris really is a complete upper class twonk....and this proves it.
Capitalists and free marketeers are always banging on about restricting government meddling, light regulations and how the market can provide....and as soon as their own short (selling) sighted pactise gets these overpaid dweebs into the doo doo - they run to the government and plead for taxpayers money to save their sorry backsides!!!!
Boris is a total (but usually mildly) amusing chump - who shouldnt be in charge of anything more important than his own credit card bills.
This global financial meltdown (and subsequent bail out with public money) just proves beyond doubt - SOME things are too important to be left to market forces.
- Greg, London
I suspect the only people he has annoyed are those who would blindly vote for Ken and follow the Labour party off a cliff if asked to, so harm done. In fact, he makes the rest of us love him even more when comes out with honest opinions like this.
- St, London
In the words of Shakespeare, he's a complete knob. And I am a Tory
- Robert Sylvester, Fulham, LONDON, UK
Its nice to see all these x city chavs having plenty of time to dwell on the damage they have caused the rest of us. Won't own up to it though, No, everyone else is to blame, the greedy bankers had nothing to do with it. look on the bright side guys, Boris might be able to get you a job on his brand new routemasters.
- James Hennessy, london england
Did Boris come down in a bubble? Doesn't he know that the products sold to the sub-prime borrowers were still on terms way more than they could afford to pay. Those borrowers are now homeless and queueing for food stamps. If it was all so great, why does he suppose the banks collapsed under the mountain of debt they had piled up for themselves in the name of profit which, of course was private. It was only the losses that were nationalised.
- Val Daniels, Mijas Costa. Spain
I see it like this - the banks have been paying huge salaries and massive bonuses, the stuff hit the fan so it's up to tax payers to foot the bill. Odd sort of wealth distribution that, society subsidising the fat cats salary.
- Joey, london
George of London seems unaware that the Germans and Finns are quite happy to pay higher rates of tax than our selfish bankers. Tax avoidance has always been endemic in the City and I'm sure our brightest workers can find loopholes in the Tax system.
- Archie Martin, Chiswick
I should be very surprised if Boris paid the correct tax on all of his little earners. Like the Parasites in the City there are loads of loopholes to be exploited by highly paid employees. A few years ago City bonuses were paid in fine wines to avoid tax. I wonder what the current fiddle is.
- Archie Andrews, Chiswick
What can we expect from this silver spoon in the mouth buffoon? Of course he would support the greedy incompetent bankers he is an old etonian after all. He is only echoing the editorial policy of his fellow etonians at the Torygraph, even they felt it wasn't quite the right time to defend the greedy, so they let Bozo Johnson do it for them.Its hard to believe that this incompetent foot-in-the mouth bonehead is in charge of our capital city. I hope all you folk in the suburbs who voted for him are happy now.
- James Hennessy, london england
What do you expect him to say. Boris is a True Blue from the right of the Conservative Party. He believes in Haves not in Have nots.
- Mick, London, England
I think Boris is right, London without its financial centre would be nothing. Canary wharf and the banks who have moved there have helped regenerate the east end the docks which were pretty much derelict once the Docks were moved out of London. What about Spitalfields, it was derlict in the late 80's now it is a part of the city and all the financial companies who thrive around it. All have brought jobs to people who work in coffee shops, cleaners, security guards, waitresses etc. I do beleive there should have been more regulations on the banks but not everyone earns millions a year with bonuses in the banks, it is just the top 10% with the others earnign the same money as doctors, engineers etc. The media have created all this angst in the last week, why don't they interview the lower paid staff who lost jobs and talk abot what they will do not just focus on the people at the top.
- Li, London
Unfortunately, the truth hurts. Boris is right to a degree - the UK will find it difficult to survive without the gilded debauchery of the City and its bankers. Everyone will eventually be affected - the trickle down effect will be enormous. Retail and the eating out industry will be hit first - hurting the already low-wage workers festering in them. Can’t live with em, can't live without them I say.
- Linda Haden, Zurich,Switzerland
Well said Boris! Everybody has benefitted from the recent City boom - how many unskilled labourers, retail and restaurant staff, builders, decorators, drivers, theatres, caterers (the list goes on and on) will now be facing an uncertain future because the big guys aren't spending anymore? How much have these people contributed to the country through their massive tax bills that will now be sorely missed? They haven't been draining the benefits system or the NHS.
- Alex Roman, London UK
The upper class twit of the decade finally shows his true colours.
- Blue Baby, London
Well said Boris, at last someone stands up against the whiny socialist politics of envy brigade. If it weren't for the city Brown would have been forced to raise even more tax from the rest of us to pay for his failed socialist surveillance state.
- Leah, London, England
City / Financial Industry may contribute 9% to the GDP, but Tourism and Hospitality contributes 20% and employs many more people. Sadly, it is often overlooked (remember no pedestrian access Parliament Square and similar anti-tourist gems!). But of course, people who work in these industries are not Tory voters / donors by default - so they don't matter as much.
- Didi, London, UK
Well said, Bo-Jo. Hooray for some common sense finally shown instead of those eejuts at Whitehall who seem incapable of independent thought. Of course finance is the one thing that London is a true world power in, and despite all Mr Darling's claims to the contrary, he will do nothing to jeopardise that position.
- Big Issue Seller, London, UK
We should declare independence for London making the M25 an international border.
Let’s keep the city as is as it will eventually find its own equilibrium. As a result, Londoners will no longer have to subsidise the rest of the UK and therefore pay lower taxes.
But of course, thoses critics of the city especially the one outside of London will suddenly change there tune!
- Richard, London
You don't hear the Germans moaning about how the car makers are too highly paid, or the Finns about how highly paid their mobile phone designers are paid, or indeed the Panamanians about how the wealth of the Canal enables the managers to live in fine houses.
Only the British could complain about its most successful industry. As we know, most other countries admire people who do well. Here, we just sneer and invoke a bit of class envy.
Good on you Boris. Keep on winding socialists up.
- George, London
Go Boris. It wasn't the banks which created the problem, it was personal greed. Nobody forced the people now in trouble to borrow, they did it of their own free will when they really shouldn't have. My only problem with this is when the banks that have managed to get themselves into the same problem are bailed out using taxpayers money, if they were greedy and stupid enough to lend money to those with no real chance of repaying it then they too should suffer. So what if house prices fall, if you own your house you still have your house and I thought that that was the reason for buying a house in the first place.
- Dennis, Taplow U.K.
As melvyn above said - loads of you voted for this idiot. What did you expect? Oh, a loveable baffoon, wasn't it? A typical true blue tory now fully undressed is revealed and he is an example of what is to come should Cameron win the general election. I wonder if Boris' comments will make Evening Standard front page tonight like they did with Ken Livingstone when he so much as breathed?
- Matthew, London, UK
I would expect that the size of Boris's tax bill annually pays for half a dozen others to be employed at his expense. Probably doing civil service jobs in another Quango organisation.
- David, London
Boris got into power because we were sick of the Livingstone and Socialist dogma that assumes we need to redistribute everything to get a better society.
Socialism as operated by this spent force goventment has shown ther eis a point when taxation hurts and no amount of dogmna will defend it.
Comments against the city and its banks are credible simply because it too thought the gravy train would last forever.
You cant stop bonuses or high salaries but you can change the payment schedules to reflect contribution spread over a longer time frame, i.e 3 years.
There also needs to be an understanding that there can be no bonus pay for failure.
Tweeking the present formal will be fairer and benefit all.
Finally we as Chris Blackhurst said yesterday our regulators have shown a level of ineffective behaviour that comnes ofm their complete inability to understand the problems they face.
They too must not be protected by the cosy environment they have created where incompetence pays.
- Robert Marshall, LONDON
If people want to be/earn the money bankers earn then go and do it, don't whinge about them out of jealousy. Personally, I don't earn anywhere in the region of what they earn, nor do I want to for all the hours they work. There is plenty of opportunity in this country for people to do anything they want to. Of course some things rely on luck (what doesn't) and sometimes connections but don't begrudge people who have the drive to do the things they want.
Why should Boris not get earnings for writing his column? I'm slightly confused. Should a teacher who enjoys their job not get paid, or any other journalist? this country seems beset by monestary jealousy!
- Kitty, London
Of course there is nothing wrong in lending money for profit, providing that the money you are lending actually
exists. However this so called credit crunch has come about because banks were allowed to lend money that
they didn't have and what is more, charging interest on it.
If an ordinary member of the public did such a thing it
would be called fraud and prosecution would follow.
What we have instead is taxpayer's money being handed over to "save" banks. Since when is the ordinary taxpayer
responsible for private financial entities? - Mass class action agsint the government should follow.
- Kim Blake, London
Just a thought, but what's happening with Boris' much-heralded Square Mile fund to help the capital's needy. Could be another election promise is about to go up in smoke. Oops
- Steve, London
Well its nice that one Tory is keen to tell us the Party Line. It's been noticable that Camoron, Osborne and Redwood have been keeping their heads down and mouths shut. Is nobody minding Boris any more?
- Archie Andrews, Chiswick
Well done Boris, you seem to have dealt your party an own goal!!! Just how out of touch are you?
- Sharon, London
Boris, I believe you got it all wrong this time around by pursuing Tories agenda in a highly diverse society we live now where dignity of Labour should be distributive. What do you say to the Engineers, Doctors, Sales Representative, Pharmacists, and the unskilled labours who equally put lots of effort to hit their targets.
There should be fairness in our society as been preached by Labour party but stopped by Conservatives. Let us have a truly prosperous nation and not privileged few.
- Olusegun Opanuga, Norwood & Dulwich, UK
Boris, I believe you got it all wrong this time around by pursuing Tories agenda in a highly diverse society we live now where dignity of Labour should be distributive. What do you say to the Engineers, Doctors, Sales Representative, Pharmacists, and the unskilled labours who equally put lots of effort to hit their targets.
There should be fairness in our society as been preached by Labour party but stopped by Conservatives. Let us a truly prosperous nation and privileged few.
- Olusegun Opanuga, Norwood & Dulwich, UK
So refreshing to hear a Politician speak what he really feels. I couldn't agree more with his points. London excels as a financial centre and is deemed the leading financial institution in the world. God forbid liberals ever get into power and put a cap on our salaries at 50k and then tax us at 40%.
- Boris4king, London
Boris clearly gets well under the skin of the socialist losers of London. Great! The socialists have run Britain for the last 10 years not the Tories, they screwed it up as much as anybody could, Labour always does .. big time. Billy Liar, Greedy Gordon and Red Ken. The fact is the real money has not been made by hard working bankers but by entrepeneurs and hedge funds, both of whom can up sticks and relocate if Mr 60% Tax gets his way! Stuff the Socialists where it hurts Boris!
- James, New Malden, Surrey
Melvyn - suggesting a tax band of 60% for high-income professionals is absurd. As Mr.Realist points - you would only drive the most revenue creative (for themselves, their companies and ultimately the country) to other countries.
Just out of interest - where do you suggest we put that extra money? We have the most well funded NHS, yet the most poorly run in the whole of Europe. And don't even get me started on the scamsters and low-lifes that defraud our benefits system.
Don't even get me started about Tory cutbacks - have you seen our National Debt Level since Gordon has been in charge of the finances???
- Ivor Bigg-Dett, Bromley, Kent
Of course the government will not tax or restrict the City, where do you think they are going to work when they all become redundant at the next election?
- Tom, Watford UK
If Bankers work so hard for their exorbitant salaries how does Oliver Letwin manage to work for a Bank and put the hours in as a full-time MP?
- Arthur Atkins, Chiswick
Boo Boris. This clown has slipped from being merely unfunny to actively offensive.
- Charlie, Soho
Yes, and many of those lucky Americans who bought their own homes are now handing in the keys to the mortgage companies.
- Miriam, London
Well done Boris. Mr Average has forgotten who's been paying the bills for 15 years. Yeah sure the bankers have screwed up and perhaps regulation should be a bit tighter to avoid high levels of debt. But nobody complained when the government were raising billions from high earners. All these comments will drive business to Switzerland and Monaco both of which seem void of lazy, hopeless whingers
- Mr Realist, London
Well you voted for this tory twit so dont complain now when he has time for newspaper columns and yet no time for vital London infrustructure improvements like the cross-river tram.
I think its time Alaistair Darling introduced a new tax rate of 60% on people who like Boris receive second or even more incomes on top of their full time pay (when it exceeds £99,999). This rate would always apply to the highest paid job/s.
Voters should take this attitude as a warning of what would happen if Deep Cuts David Cameron ever gets hold of public services!
- Melvyn Windebank, Canvey Island, Essex
Boris gets 250 K for an hours work a week, doing something that he enjoys and ought to do for free. Supporting the Party formed by the rich and selfish and captured by Old Etonians. They have the nerve to tell struggling voters that being poor is their own fault. This is the sort of arrogance that we were assuming would be avoided until they have won the next election.
- Norman Lament, Hammersmith
Well done Boris, after all who would know more about spivs and conmen than yourself, It takes one to know one.
Time to be incacerated on, 'Boris Island' methinks.
- David, London Uk
About time someone stood up for the bankers! They are also only doing their job, most of the time working very hard and long hours. Not everyone in the city earns millions and bonus's are taxed very heavily, which no-one seems to mention!!! London city workers are not the people who should be hung out to dry here!!!! I am so sick of the unbridled jealousy and vitrol which has been unleashed by people around the country, most of whom i suspect have never set foot in the city!
- John, London formerly Scotland
As usual, Boris get's it spot on. The UK only has one profitable and tax revenue generating industry - financial services, and it needs all the support it can get right now.
As for home owners, the majority of people rent and you never hear the media going on about the cost of renting. Houses are for living in, not trying to make money from.
- Finbar Taggit, London
Oh dear, yet one more stupid out of touch remark from Boris foot-in-the-mouth Mayor of London. He promised so much: protect greenfields and open space, yet has been at work destroying it, helping Kensington and Chelsea Council concrete over Holland Park School playing fields; he promised to stop knife crime, but it has never been higher; now he wants to help short sellers destroy our economy. Poor old David Cameron, what a way to bring in the Tory Party Conference.
- Richard, London, England
Bang on Boris!
- Dave Davies, Basingstoke, Hants
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