Why Little Will Change in Banking
Because the chief knuckleheads who collect nickels in front of steamrollers are rewarded for being leveraged and lucky, not for being smart or responsible. (Chuck Prince, what's-his-name with the doobies... you know, his business went kaput... plus Angelo Mozilo, the list goes on...)
All these guys reaped millions and millions in compensation and scuttled away while their Ponzi schemes fell apart. Even those who were tossed out suffer nothing but the trials of having to survive on piles of money that most people could never dream of.
And nothing's changing that.
“Banks aren’t yet linking individual compensation to the risks of specific deals; rather it is linked to the overall performance of the bank,” says Helen Griffith, a partner in the global markets division of search firm Heidrick & Struggles.
Toss is the fact that we've institutionalized socialism for the rich, by letting Paulson and Bernanke foist taxpayer-funded bailouts onto the enterprises wrecked by these failures for their major mistakes, and you can see why little will change. There's no disincentive to run a big bank into the ground with the wrong risks so long as top managers are allowed to slither away with vast fortunes.