Cicero on the Banking Bonus Lottery

Winning the bonus lottery

Bob Diamond does not get it- these huge “bonuses” are a function of a dysfunctional market- those who receive them are not entrepreneurs, they are merely lucky, not skilful. Meanwhile, the impact of the bank bail outs is severely impoverishing the average voter. Voters are angry- and they are right to be. The banking system is paying out more money than ever to its workers and less money than ever to its owners.

This is not sustainable, and it should not be sustained. Vince Cable is quite right- the banks should be broken up. Genuinely entrepreneurial operations should be able to reward real risk taking appropriately, but the vast majority of bank business is not entrepreneurial and does not earn the levels of compensation that has become the bloated norm in the sector.