Should Bankers' Bonuses Be Capped by Europe? Chancellor George Osborne Launched a Fresh Assault on Capping Bankers' Bonuses Yesterday after MEPs and the European Commission Proposed Limiting Them to a Maximum of a Year's Salary or Double That If Explicitly Approved by Shareholders. Should Bankers Bonuses Be Capped?

Western Mail (Cardiff, Wales), March 6, 2013 | Go to article overview

Should Bankers' Bonuses Be Capped by Europe? Chancellor George Osborne Launched a Fresh Assault on Capping Bankers' Bonuses Yesterday after MEPs and the European Commission Proposed Limiting Them to a Maximum of a Year's Salary or Double That If Explicitly Approved by Shareholders. Should Bankers Bonuses Be Capped?


YES Says Jonathan Edwards, Plaid Cymru Treasury spokesman, MP for Carmarthen East & Dinefwr IT'S high time for a cap on outrageously high pay - and bankers' bonuses are symbolic of a culture that has got to stop.

How can George Osborne seriously defend not putting a cap on excessive bankers' bonuses? Why should anybody get a massive bonus for simply doing their job? The kick in the gut is that these bonuses are paid even when the banks make massive losses.

The European Commission plan to put a cap on bankers' bonuses is common sense. This is clearly in the mainstream of European politics. It is the pro-banker policies of successive London parties - Labour and Tory - that are unjust and fail to command popular or intellectual support.

Outrageously high bankers' bonuses that were not linked to long term productive and sustainable gains were a major contributing factor to the short term thinking and excessive risk taking that caused the financial crash of 2008 which left us within hours of complete social collapse. The recession and subsequent depression is a direct result of an out-of-control banking culture.

Subsequent self-defeating austerity has made an extremely bad situation much worse. It is clear that the Welsh economy, like other producing economies of the British State, has been in a very bad way and will continue to be so even if miniscule growth returns to the UK economy as a whole. Whilst attention is focused on the recovery, it is still important to fix the problems that caused the crash - otherwise it is only bound to happen again.

Income inequality has grown exponentially since the 1970s. Income at the top has grown out of all proportion when compared with very minor increases for those at the bottom. A cap on bankers' bonuses would go a long way to begin to address this.

Big banks are continuing to fail to lend to the real economy, with lending falling by PS2.7bn in the last three months of 2012, despite accessing PS19bn under the Treasury's Funding for Lending Scheme.

Those who oppose restrictions placed on banks and bankers' pay and bonuses often like to cite Switzerland as an ideal model. It was therefore immensely encouraging to those of us who support a cap on bonuses to see that a referendum was held there and that it passed with massive popular support.

It is also a blow for those that say pay must remain 'competitive' to attract the best talent when compared with places like Switzerland. They always argue that banks will relocate - where else would or could bail out the banks, or pump hundreds billions of pounds of quantitative easing into bank coffers? Bankers end up holding society to ransom.

NO Patrick Minford, Professor of Applied Economics, Cardiff Business School This proposal is part of the ongoing war of Brussels against the UK financial sector. …

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

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.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Should Bankers' Bonuses Be Capped by Europe? Chancellor George Osborne Launched a Fresh Assault on Capping Bankers' Bonuses Yesterday after MEPs and the European Commission Proposed Limiting Them to a Maximum of a Year's Salary or Double That If Explicitly Approved by Shareholders. Should Bankers Bonuses Be Capped?
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
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?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    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.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.