Bankers who enjoy unlimited reward and limited downside (no job) are no more. It serves them right.
The EU has rightly capped bonuses. Of course shareholders should have done this years ago because banks are only there for the benefit of employees, but they are a sleepy lot. Because the EU, and here we are talking about European governments, are now the owners of all the banks (the ECB, BoE et al are lenders of last resort and guarantee all these too big to fail banks) they can control what they do. If they had let capitalism do its job, most of the banks would have gone bust and only the best run would have survived but that didn't happen. So the techno-socialists have got what they wanted. They have the banks by the short and curly's. From capital to bankers pay. It serves the banks right. Bye bye Bobby Geezer and all that was wrong with banking. Hello post office banking and retail dullness.
How many other businesses are there where you can gamble other peoples money and get paid for it so handsomely? None it now seems. (fintag)
Capitalism hates interference and the EU are the great interferes. So that is where we are. Not that smug American bankers will be immune because those in Europe will be snagged and Obama will probably enact something similar to its bankers too (although he needs to hurry). Banking will become a boring place for the non thinkers and risk adverse conservative types.
Of course hedgies and pirates are not immune to this new order and are to be caught up in the AIFM bollox which will do something similiar. And this is where I think the EU will fail. Hedgies and pirates lose everything if it goes wrong (partners as opposed to spoon fed employees who just get another job). Once this happens, hedgies will set up research offices in London and trade in Singapore or most likely Switzerland because of the time zone. Or maybe South Africa? Anywhere where AIFM cannot touch you.
The EU seems to think its an old book shop and is trying to stop Amazon in its tracks.
The winner will be Asia of course. In 20 years time people will talk about JP Morgan and Barclays as if they are old classic cars.
The short term upshot will be UK leaving Europe. Once UKIP win the Eastleigh by-election that is.
American big banks torture the small guys (bloomberg)
UKIP to win (telegraph)
Bankers crying in the streets (reuters)
CityAM man to replace Boy George (with Boris as King) (telegraph)
City of London to be turned into a homeless shelter shanty town.