The problem with banker’s bonuses is not only that it is
highway robbery, but that it encourages a sense of invulnerability, irresponsibility
and self-indulgence – as the conduct of bankers clearly shows. The banks were
run far more efficiently and responsibly l when executives weren't making that
kind of money.
These guys earn enough in a single year to keep them going for
life, so what do they care? They have the freedom to indulge themselves in all
sorts of costly ways – costly to their shareholders, their customers and the taxpayer.
The whole of history demonstrates a basic weakness of human nature: the
combination of power and plenty not only corrupts, it makes people stupid.
Exceptions prove the rule. Far from motivating bankers to do their best, the
government tempts them to do their worst.
