Europe threatens bankers' bonuses

[fhdz]

Europeans do not trust the free market to deliver the desired results for society at large.

Yes, oddly, with a lack of regulation banks seem to want to risk peoples' savings to increase profit.

Not that we Americans would know anything about that.

[Zanza]

I don't get your point.

[DGuller]

I would expect more regulation like the Swiss one in the future. Europeans do not trust the free market to deliver the desired results for society at large.

Definitely a wise view when it comes to financial sector casinos.

[Valmy]

Yes, oddly, with a lack of regulation banks seem to want to risk peoples' savings to increase profit.

Not that we Americans would know anything about that.

Well they do that because they know the savings are insured and they will probably be bailed out if they really screw up.  Banks historically are very conservative, but they cannot afford to be these days.  The other banks will take those risks and make lots of money and get lots of capital and will not suffer the consequences.  I also was not aware that we lived in an era with a lack of banking regulations.

[Valmy]

I would expect more regulation like the Swiss one in the future. Europeans do not trust the free market to deliver the desired results for society at large.

Definitely a wise view when it comes to financial sector casinos.

Finance is always the trouble maker isn't it?  Somehow our regulations have consistently failed to tame it though. 

[Admiral Yi]

Let a thousand flowers bloom, let a thousand schools of thought contend.

It will be an interesting experiment.  If the Swiss can still attract world-class executives, their policy will have been proven successful.  Or perhaps they can make do with less than world class executives.

[Admiral Yi]

Well they do that because they know the savings are insured and they will probably be bailed out if they really screw up. 

History does not support this statement.  Plenty of banks have gone under.

[DGuller]

Finance is always the trouble maker isn't it?  Somehow our regulations have consistently failed to tame it though.

Disagree about the last part.  I think we've had it tamed for 4-5 decades since the Great Depression.  Unfortunately, greed made us forget the ultimate consequences of greed run amok.

[Valmy]

Finance is always the trouble maker isn't it?  Somehow our regulations have consistently failed to tame it though.

Disagree about the last part.  I think we've had it tamed for 4-5 decades since the Great Depression.  Unfortunately, greed made us forget the ultimate consequences of greed run amok.

Well it not a question of greed, I mean they are banks their entire reason to exist is to make money, but rather the behavior they feel like they have to participate in to be competitive.

[Valmy]

Well they do that because they know the savings are insured and they will probably be bailed out if they really screw up. 

History does not support this statement.  Plenty of banks have gone under.

Plenty of others did not.  Maybe you are right but my perception is they were expecting to be saved if they messed up.

[Valmy]

Europeans do not trust the free market to deliver the desired results for society at large.

Well I guess my question is what exactly are they requesting it deliver?  The only way for the free market to punish large salaries would be for those institutions to lose out to banks with smaller salaries. 

[Zanza]

It will be an interesting experiment.  If the Swiss can still attract world-class executives, their policy will have been proven successful.  Or perhaps they can make do with less than world class executives.

Switzerland is one of the best places on Earth to live. I doubt they'll run out of excellent managers anytime soon, no matter if they pay 5 or 10 million per year.

[Zanza]

Europeans do not trust the free market to deliver the desired results for society at large.

Well I guess my question is what exactly are they requesting it deliver?  The only way for the free market to punish large salaries would be for those institutions to lose out to banks with smaller salaries.

And as that's unlikely to happen, the democratic sovereigns of Europe will eventually shape society in a way they desire through laws like the Swiss one.

[Grallon]

Why do they go after bonuses for executives instead of after the profits of the banks themselves?  Seems like a token gesture and nothing else.



G.

[MadImmortalMan]

We'll go back to the days of company cars, housing provided, expense accounts, etc.