How to Hold Those Bankers' Big Bonuses in Check, Alistair; Plain Truth: Bank of England Governor Mervyn King Admitted That Banks Were Run in the Interests of Bankers Rather Than Investors

The Evening Standard (London, England), May 27, 2008 | Go to article overview
Save to active project

How to Hold Those Bankers' Big Bonuses in Check, Alistair; Plain Truth: Bank of England Governor Mervyn King Admitted That Banks Were Run in the Interests of Bankers Rather Than Investors


NEWS that bankers have taken [pounds sterling]13 billion in bonuses so far this yearwill prompt the usual flurry of toothless complaintsunions can "demand" an inquiry and the rest of us can seethe.

It's only a few weeks since Bank of England Governor Mervyn King conceded thatbanks are run in the interests of bankers and not investors when he said:"Banks have designed compensation packages which provide incentives that arenot, in the long run, in the interests of the banks themselves." Angela Knightof the British Bankers Association told him to mind his own business, but ifreckless pay that endangers the financial security of the public isn't Mervyn'sbusiness, then what is? Bankers get paid for closing dealsfor volume. The quality of the deals, the profits made, are barely relevant.

What's to be done? Anti-regulation fanatics like to argue that while thecurrent system is broken, government interference can only make it worse.

Complaining about the status quo but insisting there's no point changing itseems lameas if the speaker's main interest was in getting his own piece of the action.

It would be preferable if new laws weren't needed to sort this mess out, butthe banks have had years to put their houses in order and clearly won't unlessthey are made to.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

How to Hold Those Bankers' Big Bonuses in Check, Alistair; Plain Truth: Bank of England Governor Mervyn King Admitted That Banks Were Run in the Interests of Bankers Rather Than Investors
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?