Anyone who thinks that capping salaries is a good idea is an idiot.
The market works just fine when the proper oversight is provided by the Board of Directors.
99% of these bonuses went to the guys in the middle-those who’s salary is based on the amount of business that is brought into a company. And you know what—during the past year those folks who’s business it is to “trade” have done a great deal of business. They make money going up, and going down. These are not “buy and hold” shops, they are brokerages. If there is no trading going on, they wont make the commissions and bonuses.
You cannot just decided that a business model doesnt work because you dont like the outcome. if it bothered them that much, dont pay them the TARP money.
The folks in Washington, and in middle america don’t understand how this business has worked for a thousand years.
Go ahead—wage controls worked great in 1970, I am sure they will do wonders now.
Fools.
“99% of these bonuses went to the guys in the middle”
Run the numbers.
This is simply not the case.