Tuesday, April 12, 2011

Regulating Bank Bonus/Pay Programs

You can rely on a dependency that is difficult to get rid of when you accept government aid. The result becomes worse than an addiction. Even when you want to repay the debt, Uncle Sam makes it hard to comply.

For some of the larger banks who accepted funds from the U.S. the result was impractical and actually stupid.

Apart from the fact the bank management is controlled within a government straitjacket (which is a characteristic of a fascistic and not a capitalistic free government) banks who have accepted aid are restricted in how they pay bonuses and compensation to top executives.

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