The Bonus Debate - Q & A
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A - Because they are once again making profits, and want to retain the services of those who are instrumental in helping them do so.
Q - Why are large sections of the general public angry about the payment of bonuses this year-end ?
A - Because many regard themselves as part-owners of some of these banks, and are unable to share in any upside themselves.
Q - Why are politicians jumping on the bonus bandwagon and crying foul ?
A - Because they have to be seen to be in tune with the public consciousness, and many are soon up for re-election.
Q - What will happen if banks are forced by regulators / governments to adhere to strict bonus payment regulations ?
A - Nothing - as long as any solution is introduced globally. Any regional differences will be exploited by both banks and bankers.
Q - Is a global solution likely ?
A - No. There will always be financial centers / would-be financial centers that will hold off from any global solution, in order to exploit the tax revenue opportunities available to opt-out regimes.
Q - Will governments act unilaterally and impose local solutions ?
A - No, as they will be loath to lose valuable tax revenues.
Q - Is there any answer to this conundrum ?
A - Yes. Allow poor-performing banks to fail, or nationalize them.
Q - Will this result in any better deal for taxpayers ?
A - No, but at least it will stop all this endless carping about bonuses.
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