End Bonuses for Bankers
- Nassim Nicholas Taleb for nytimes.com November 7th, 2011
- Source: http://www.nytimes.com/2011/11/08/opinion/end-bonuses-for-bankers.html?_r=2
I HAVE a solution for the problem of bankers who take risks that threaten the general public: Eliminate bonuses.
More than three years since the global financial crisis started, financial institutions are still blowing themselves up. The latest, MF Global, filed for bankruptcy protection last week after its chief executive, Jon S. Corzine, made risky investments in European bonds. So far, lenders and shareholders have been paying the price, not taxpayers. But it is only a matter of time before private risk-taking leads to another giant bailout like the ones the United States was forced to provide in 2008.
