Do bankers take crazy risks?

What Happens When There Are Limits on Bankers’ Bonuses?

Do bankers make too much? That question has been widely discussed ever since the 2008 financial crash, which many experts blamed (in part) on a system of compensation that excessively rewarded risky behavior. As one element of the bailout, President Obama limited the compensation of executives at banks the government rescued, but the cap wasn’t absolute—compensation above $500,000 could be paid in stock—and the measure lifted once a bank paid the government back. ….[READ]


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