The horizon is not so far as we can see, but as far as we can imagine

Incentives Do Not Work To Change Bank Behavior

The FDIC has put out a proposal to penalize banks whose pay practices incentivize risky behavior.

It won’t work.  The time is long past to stop using incentives and to simply tell them what to do.  The banks in Britain are eating almost the entire cost of the banker bonus tax of 50%.  Bankers have no concern with the health of their banks, only with the size of their own salaries, since they know that if necessary governments will spend any amount of money to bail them out if they go under.

This is not going to change, because we just spent trillions proving it to them, and they won’t believe words over actions, as they shouldn’t.

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2 Comments

  1. Tina

    I can’t remember who said it, maybe Numerian, that if we want the banks to pay attention people should just stop paying their mortgages. Wouldn’t that be a wonderful thing? What are they going to do, give you a bad credit score 😀

  2. jo6pac

    Does any one have any links to us banks that have left FDIC? I heard this was happening and last time I look on there site I couldn’t find anything. Hoax?

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