A dramatic vote on Capitol Hill is set to bring major change to Wall Street's risk culture as cash incentives for executives, brokers and traders are limited to a third of their salaries. Gaby Hinsliff, Zoe Wood and Paul Harris report on the implications for Britain.
Gordon Brown was under rising pressure to clamp down on the City's bonus culture last night after the US Congress agreed to drastic curbs capping senior bankers' bonuses at a third of their salary.
The measures, which are expected to be signed into law by President Barack Obama (Barack Obama page on the Guardin website) this week, would apply to dozens of staff at American banks bailed out by the taxpayer and could cost Wall Street's wealthiest millions. Cash bonuses would be banned in favour of long-term share options, with the restrictions extending beyond a handful of top executives to senior brokers and traders.
read full article from The Gardian
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Why are they even bailing out these banks? How about bailing out the people of the country instead. Who deserves welfare more? Us or the banks who have squandered their money and charge us $25 for every overdraft and $1 or more for every ATM transaction?
ReplyDeleteThis country is dead. It's not about the people anymore. And it hasn't been for a long time.