What is wrong with a bonus culture in banking?
The European Union parliament will vote next week on new legislation to curb bankers’ bonuses. The rules on bonuses are included within a larger proposal on capital requirements. According to the Financial Times, ‘lawmakers and EU officials welcomed the agreement and said it should help to reduce the “bonus culture” in the banking sector.’
Well here at Vox Sapiens, at risk of repeating ourselves (see Bankers’ bonuses – wrong target) we think the bonus culture should be increased, not reduced. This is because Read more
The US Financial Reform Bill is too long
The US Senate has started to debate the Financial Reform bill. This bill proposes the most sweeping changes to US (and, therefore, global) financial markets regulatory practices since the Great Depression of the 1930s.
So one might think this an extremely important bill, right? So all the Senators have Read more
The incredible story of the Icelandic banking crisis
The Icelandic Special Investigation Committee (SIC) yesterday (April 12th, 2010) delivered its report on the collapse of the three main banks in Iceland. It makes shocking reading.
It can be downloaded here.
At Vox Sapiens, our initial vision was of a couple Escher’s masterpieces. Read more
A new approach to punishing offenders and rewarding the best
The recent financial crisis was exacerbated by several failures, one of which was poor risk management by banks. Previous attempts to coerce management into being more responsible have failed. How about this approach? Read more
How to prepare for the collapse of the euro currency union.
Greece uses the same currency as Germany. But Greek government bonds yield almost four per cent more than German government bonds, an all time record for the eurozone.
This is telling us something; really telling us something. The bond market is pricing in a high possibility of default by the Greek state. Read more