Hi there - HolgerTheDane here (yes my account is still of limits to me because of lost/forgotten password - ATS won't send me info to help out)
Anyway - I thought I'd give you an idea as to why bonusses (boni?) get's paid out.
Shortly before the collapse was a reality, I was summoned (best word for it) to my bank for an important meeting. Couldn't figure out why but they
Wife and I went.
Turned out that they wanted to inform me that I was a millionaire (only in Danish crowns though) since I had almost paid out our house. They drew a
circel on a piece of paper and kept reffering to it as they drew a small slice which was supposed to illustrate how little I had left to pay and how
much was available for a second mortgage.
We should stop paying on the remainder and instead pay into a pension scheme, which would be paid out when I retire. That would give me some extra
cash in the end. The interest on the pension scheme would easily pay for the accumulated interest on the remainder on the house.
My credit account should be changed for two separate accounts - one for plus and one for minus. (I still don't understand this one). Anyway - it
would give me 5% interest. I asked why they didn't just change the interest rate in my existing account, but "that wasn't possible".
When I refused these alternatives and explained to them, that my primary goal is for us to own our house, they turned to my wife and asked her what
she thought and if she didn't think they were right.
Being a good wife she looked him straight in the eyes and said something like: "I don't know about money - I leave that to him". (well that's a
lie if I ever heard one).
For more than 45 minutes they kept on and on about the benefits in their proposals. When we ended the meeting - which we never asked for - they said,
that they would send us the papers - "just in case".
Papers arrived and after having studied all the small print and checked on the bank's internet site it turned out that the pension scheme which was
supposed to pay out when I retired only did so if I retired for good i.e. died.
Not only that - the pension scheme was relying on stocks and bonds which would be almost worthless now.
The 5% interest on the credit account was only when I owed them money. When the balance was in the plus the interest would be 0.023 %.
At the meeting I asked them "What's in it for you?". "Nothing", came the answer, "We are here for you. We are YOUR bank advisors".
But it strikes me, that this kind of behaviour from the bank advisors might be what earns them their boni (bonusses?).