G20 End Of Term Report: B Minus, Could Do Better – See The Teacher

As I write this I have not seen details of the G20’s agreement and related events. So I’m going by soundbites and rumours that I’ve heard in the last few hours. Nevertheless, I can’t resist a few quick comments.

First, Gordon Brown has talked vaguely about only rewarding bankers for positive performance. Well, believe it or not, apart from packages paid to the likes of Fred Goodwin, that is exactly the current situation! And it is this that encourages risk. Compensation needs to be tied to maturity of contracts. And diversification within institutions needs to be encouraged. We have to align the interests of bank employees with the interests of depositors. I’m still not convinced that those in power get this yet.

I understand that mark-to-market is being relaxed in parts. I approve. I just wish that banks had been nationalized first so that the taxpayer would have benefitted from this. Again banks have “upside exposure with no downside risk” as they say in the prospectuses. For the taxpayer it is the opposite, so no change there.

And finally, they are going to be publishing a list of bad tax havens in order to shame them. Isn’t that rather like telling teenagers where to buy the cheap alcohol? At the moment we have no idea where to put our money, since once-respectable banks are no longer safe. But this time tomorrow we’ll all know exactly where to go!

I’m being harsh, you say. They mean well. Oh, yes, I’m sure they do!

P

Related Posts

Where Do You Keep Your Offshore Money? Where do you keep your offshore money? The media is all upset about celebs, politicians, etc. having money in various offshore places, in order to ...
Bloomberg View Columnist Barry Ritholtz Interviews... Listen to Barry Ritholtz interview Paul Wilmott about quantitative finance, mathematical modelling, reputational risk, Tom Cruise, JK Rowling, Billy J...
Boris Johnson, Yanis Varoufakis And Sir Vince Cabl... Boris Johnson, Yanis Varoufakis and Sir Vince Cable all have something in common…. All three have been in the news lately with their interpretation...
Webcast – Paul Wilmott On “The Money F... Paul recently gave a talk in downtown Manhattan about his new book, co-authored with David Orrell, The Money Formula. Other topics get dragged in alon...
Jeremy Corbyn: My Part In His Ascent First, disclosure: I am rather right wing, from the school of "take some of my income in taxes but otherwise leave me alone, please." And as a general...
The Money Formula – New Book By Paul Wilmott... The Money Formula: Dodgy Finance, Pseudo Science, and How Mathematicians Took Over the Markets OUT NOW!!! Buy Paul's Latest book NOW on Amazon! ...
Ed Thorp: A Man For All Markets The book we've been waiting for, the full story of Ed Thorp's career in mathematics, science, gambling, and finance. An inspiration for us mortals. ...
We have adjusted our estimate of Mark Carney’... In August The Bank of England forecast growth in the UK in  2017 to be 0.8%. They have now adjusted that forecast to 2%. That's a factor of 2.5....