A good friend forwarded me an Op-Ed in the New York Times today. It questions the logic of rewarding bankers with bonuses – those same bankers who decimated the economy by making excessively risky bets. The writer’s contention is that the bankers have little to no downside risk, and so there is no disincentive – only the knowledge that they will be bailed out again.
I agree that there needs to be more accountability within the industry. There has been virtually no legal action taken in the wake of the mortgage crisis and subsequent economic crash. In most cases, the same people who who led us into disaster, are the exact same ones leading now. The bonuses should go away, as should the extreme risk-taking. As the author says, leave the extreme risk to the hedge funds.
This is all the more reason to ask the provocative questions, to not allow the traditional Wall Street firms to dictate your financial future. Move away from the big firms and find a small firm that is aligned with who you are and what you stand for.