Saturday, September 19, 2009

Regulate pay at bank

Even America finds it necessary to regulate pay at banks. This breaks the rules of the free market. It shows that the free market has failed, and America has now recognized it. You cannot rely on the free market that is unregulated and driven by greed and scams.

The banks and financial sector is probably the worse in this respect. America has decided now that they need to be regulated, even down to the pay of bankers. Read this article in New York Times.
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3 comments:

Parka said...

Some of these bankers don't deserve what they earn. They don't come with any money-back guarantee when they fail to perform. In many cases, they are even rewarded for their failures. The only reason why their pay is so high isn't because of the value they are contributing, but because their salary is peg to other people's salary.

There really isn't any need to regulate pay. Just have a mony-back guarantee.

September 19, 2009 11:13 AM
Anonymous said...

cap on a free market will always result in the outflow of talents to another free market.

talents expect to be remunerated in accordance to their talent.

September 20, 2009 2:24 PM
Tan Kin Lian said...

It seems that the "talent" is to create financial products that can rip off the customers to make profit for the bank.

It is better for society NOT to have such talents. Why pay so much for "talents" that are really gamblers and do not add value to society?

September 21, 2009 6:45 AM

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