Friday, September 25, 2009
G20 take centre stage!
In recent days the actions of the G20 leading economies have dominated the news agenda. One aspect of this has been the various statements made by some of the key players on the need to clamp down on the level of bankers' bonuses and the activities of hedge funds in an attempt to avoid some of the causes of the credit crisis. There has, however, been a clear divide between those leaders representing continental Europe (Angela Merkel and Nicolas Sarkozy) and the those representing the Anglo-US axis (Brown and Obama). The former advocate much tougher financial regulation including explicit measures to limit bankers' pay in the future while the latter favour lighter regulation on financial institutions. There is little doubt that both Brown and Obama are facing stiff opposition from the city of London and Wall Street to any attempt to come down too harshly against the banks. This will be a debate that will continue for some time....
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1 comment:
It is really ridiculous, the way bonuses are handled. For example a banker earning 100K a year can get a bonus with a good performance of 1000K. It is not fair for this to happen, although banks can choose how much they give, it caused the credit crisis in the first place. The only time when banks should give millions in bonuses is when the banks have done extremely well, and they are at ease giving that amount of money. But why do banks give a high bonus, correct me if I am wrong but I believe it is for job security. I think bankers will respect that they gave a high bonus, and they will think that they have a high job security and also because they do not want key workers to leave and go to competing firms if high bonus is not part of the package.
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