Wall st bonuses

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anonymous_coward
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Joined: 10/21/2016 - 12:18pm
Wall st bonuses

Good piece on the evolution of Wall St. bonuses over the past 30 years:
http://www.nakedcapitalism.com/2017/03/5-charts-wall-streets-outsized-pa...

I am personally against directly regulating bonuses - it never turns out well when you try to interfere with market pricing. But you could simultaneously reduce bonus payouts and make firms less "too big too fail" by simply increasing the amount of cash/collateral trading firms have to maintain (i.e. reducing their leverage). You could even scale it based on the size of the firm, thereby encouraging smaller firms (which would in turn reduce the size of the average payout).

Or, you could just raise taxes on the wealthy. However, given the GOP's control, I doubt we're going to see that happen any time soon.

Mainelion
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Last seen: 9 hours 55 min ago
Joined: 08/11/2005 - 12:01am
Why didn't the Dems limit

Why didn't the Dems limit bonuses or increase the amount of collateral firms must have on hand when they had Congress and the presidency? Things that make you go hmmmmmm.

anonymous_coward
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Joined: 10/21/2016 - 12:18pm
A salient point, although

A salient point, although
1) Dodd Frank did *some* to limit this by instituting the Volcker Rule (though not enough IMO)
2) the outrage at the 1% really didn't pick up in earnest until 2011ish (when Occupy Wall St. started) - by then the Dems lost control of the house. And GOPpers love their rich people - they would never make any changes against Wall St.

So that begs the question - who (in either party) is looking to limit Wall St? Certainly not Trump, as he is actively dismantling Dodd Frank (though to be fair, he has stated that he is in favor of reinstituting the Glass Steagall act. Remains to be seen if he does - given the quantity of Goldman Sachs alumni in his cabinet a betting man might say no.)

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