Bonuses for American financiers are in the firing line, and other news | The week ahead | The Economist
This model of society organisation is bankrupt ethically as well as financially, but even more so from an efficiency point of view. Failure and incompetence is rewarded. Boom and bust is rewarded.
We need to change all that in every country.
"BONUSES paid to employees at AIG, a big insurer rescued by America’s government, will stay under the spotlight. Public outrage and lawmakers' anger have steadily mounted as it has become clear that executives will share $165m in bonus payments, even after AIG received $170 billion of aid to keep it afloat. On Monday March 23rd the Senate will consider a House proposal to tax bonuses awarded to financiers at insitutions in receipt of bail-out cash at 90%. The next day the House Financial Services Committee will grill both Ben Bernanke, chairman of the Federal Reserve, and Tim Geithner, the Treasury secretary, over AIG's bail-out and bonus packages. Mr Geithner is under particular pressure, not only because of AIG’s bonuses but his botched unveiling of a bank-rescue plan."