A few points on bank bonuses

posted by
January 13, 2011
Adam Smith Institute
by Tom Clougherty  
Posted in Commentary

"Bank bonuses had nothing to do with the financial crisis. The fundamental issue was low interest rates leading to an unsustainable credit bubble, which was compounded by a variety of factors, ranging from housing policies, accounting rules and capital requirements, to deposit insurance and the expectation that banks would be bailed out if they ran into any trouble. Blaming bonuses is an easy option -- which helpfully exculpates politicians, regulators, and central bankers -- but it is also lazy and wrong." (01/13/11)


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