European Bank President Joins Critics of Bonuses
By STEPHEN CASTLE and KATRIN BENNHOLD
Published: December 11, 2009
Joining the chorus of criticism against big payouts, the president of the central bank, Jean-Claude Trichet, urged banks that had recently returned to profitability to use the cash to “strengthen their capital positions, rather than to distribute a large part of their profits or to pay out unwarranted levels of compensation or bonuses.”
Mr. Trichet, in a speech delivered in London, said that the “so-called bonus culture is one of the many factors that can drive the financial system in the wrong direction.” He added that it encouraged “self-referential speculation,” discouraged medium-term stability and drove banking “away from being a service sector to being a self-serving sector.”
Rep. Dennis Kucinich is moving in the right direction but all we're getting from Pres. Obama is useless jaw-boning.
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