Video of the Day: The Rise and Fall of Banker Bonuses
Starting from the 1980s, bankers have been making, well, bank. Deregulation allowed for easy transitions into stock and bond trading, putting bankers in line for huge profits said to contribute to the 2008 financial crisis.
An "incentive system that rewarded greed and risk," a Bloomberg video says. Post-crash, bonuses shrank (or were only handed out for long-term success) as banks prepped themselves for the post-bailout reality of smaller profits.
But some regulators don't think this is enough. The EU is passing a law that'll limit payouts and bonuses to no more than twice the salary.
Others argue that'll just drive base salaries up or put London at a disadvantage to places like NYC.