Having read this on The Caucus, The New Times political blog, I am wondering if this is a contributing reason for Brown not explicitly clamping down on bank bonuses:
Big bankers aren’t the only ones who stand to lose out if the federal government caps executive pay at $500,000 for firms that take bailout money from the Treasury.
According to the latest cost estimate of the economic stimulus bill by the Congressional Budget Office, Uncle Sam will lose $10.8 billion in tax revenue that otherwise would have been paid by high-rolling Wall Street executives.
While this deals with executive pay and obviously quotes US figures, the same principle may well apply to bonuses, although I have no idea what the figures are in the UK.
This could very well shed some light on what is becoming a heated debate.
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