Since 2014 the bonuses that bankers could earn have been severely limited, because paying spivs vast amounts encourages them to take huge risks with other peoples money and indeed the world’s economy.
But, no matter, post Brexit the slow but consistent flow of people, firms and money leaving the City has to be halted, and apparently the best way is to allow bankers to fill their boots here.
The Bank of England and other regulators seem to be all in favour of this move, it thinks that bankers have just turned bonuses into permanent pay and that this move will allow banks to cut wages in an emergency. They also claim to have much tighter rules on when and how bonuses can be paid and when taken back.
I must say I think these kind of arguments are for the birds.
Making yourself the go to destination for spivs, speculators and chancers is never a good move. It was tried in the run up to the Credit Crunch and it nearly broke the West’s economic system. Poor tax payers paid hundreds of billions to bail out the banks and prop up the economy, while the bankers counted their money.
It has only taken 9 years to forget that lesson, which is very worrying. Because I don’t think the UK can afford another financial crash.
Economics, trade and Brexit, not necessarily in that order but the dog always comes first.
By Jonty Bloom Media
"It was tried in the run up to the Credit Crunch and it nearly broke the West’s economic system."
Nearly? The West's economic system is utterly wrecked, to the point where countries are sleep walking into a new feudalism. There might be widespread employment, but people's wages are burned through about three weeks into the month, so they're effectively getting poorer, while capital is hoovered upwards to it's final resting place on a Panamanian spreadsheet.
If you'll indulge an anecdotal example of where we are, in 2002, Robbie WIlliams - the biggest selling performer in the country - signed an $80m record contract (https://www.theguardian.com/uk/2002/oct/05/arts.artsnews), which at the time seemed like an unimaginable sum for one individual to have secured in one go. Soon, that will become a pretty standard bonus package for City boys.