[T]he Wall Street bonus bonanza continues. New York-based securities-industry employees hauled in a combined $28.5 billion in end-of-the-year payouts for 2014, the largest since the financial crisis.
And ongoing financial scandals are steeped in bonus perversity. Citicorp allowed the alleged ringleader of the giant Libor interest-rate rigging scheme to keep a $3.4 million bonus. That was after they accused him of trying to manipulate markets.
JPMorgan Chase gave CEO Jamie Dimon a 74 percent raise to $20 million for 2013. That was after the bank paid more than $20 billion in fines and penalties in the wake of the “London Whale” trading scandal.
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A recent University of Notre Dame survey of more than 1,200 bankers reveals the dangerous daredevilry bred by such rewards. A quarter of all banking professionals say they would break the law in order to make an extra $10 million. A full 32 percent of those with less than 10 years’ experience would take the same risk.
So shouldn’t we just get rid of those $10 million jackpots? As long as such outrageous sums are sitting on the table, Wall Streeters have a powerful incentive to make outrageous gambles that put us all at risk.
via Is Wall Street pay too high?-—commentary. from Sarah Anderson, who directs the Global Economy Project at the Institute for Policy Studies @Anderson_IPS