Posted on 10/10/2014 8:00:21 AM PDT by SeekAndFind
We don’t like to concede that a primary cause of the financial crisis was a Wall Street compensation system that rewarded executives, bankers and traders for taking big risks with other people’s money without holding them the least bit accountable. And because we don’t like to discuss such things in polite company, it is certainly unsurprising that six years later, not a single fundamental aspect of how Wall Street pays its top people has changed. The incentive system that handed out millions of dollars in bonuses to bankers and traders who packaged shoddy mortgages into securities and sold them as AAA-rated investments remains intact and no doubt is well on its way to planting the seeds for the next Wall Street-inspired financial crisis.
But at least one global organization, the International Monetary Fund, has recognized that Wall Street’s bonus culture has proved more than capable of making life miserable for the rest of us and is trying to do something about it, albeit in a stodgy academic report. Still, the chapter about what motivates bankers and traders to take risks is one of the few instances lately that captures the continuing compensation problem at big Wall Street banks. It says “pay incentives may go too far and encourage the bank staff to engage in too much risk taking from the shareholders’ point of view.”
“For example,” the I.M.F. report observes, “by taking on loans that appear to be profitable in the short term but come with hidden, long-term risks, bankers can increase their immediate performance-based pay and move on before the risks materialize.”
(Excerpt) Read more at dealbook.nytimes.com ...
Seems to me that is what our political system does too. 17 trillion down the rst hole.
You can say that again, and again, and again...... And they just keep on taking.
Is there really any difference?
Hey Don Corleone, you should give them an offer they cannot refuse :)
The sheeple sit staring at the puzzle pieces but can’t see how they fit together.
The problem with Wall Street is that it is incredibly corrupt.
And any other organization with the ability to regulate them is at least ten times as corrupt.
And any other organization with the ability to regulate them is at least ten times as corrupt.
OWSer! /s
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