EU banker pay caps and “transparency” rules to prove a boon to EU financial market competitors.
The EU has capped banker bonuses and will require a “strict transparency regime.” This proves that you don’t have you win if the other guy is trying to lose, unless there is a third player, such as Asia.
We can’t wait for the unintended consequences to arise, which they will. How will the bankers game this system, which they will.
How about this for high comedy:
“As well as a prized bonus cap, which would go into effect in January 2014, parliament also prevailed in requiring banks to reveal their taxes and profits on a country-by-country basis from 2015, as long as the extra transparency is not judged by the European Commission as an impediment to inward investment.”
Translation: We’re not going to tell you when we’re bailing ourselves out (*cough*Greece*cough*).
Here is an idiotic quote:
“Philippe Lamberts, the Belgian Green MEP who led calls for the bonus cap, said the measures “will really bring down pay” in the sector. “Otherwise I can’t explain the [negative] reaction of the industry,” he said.”
Duh, you think? Does anyone across the pond understand the problem? How bout Boris Johnson, mayor of London:
““People will wonder why we stay in the EU if it persists in such transparently self-defeating policies,” Mr Johnson said in a statement. “Brussels cannot control the global market for banking talent, Brussels cannot set pay for bankers around the world.””
There you have it. Talent will flee. Those who figure out how to game the system will be the sediment that remains. A recipe for “sustainability,” a stupid word that we bet was thrown around a lot during those negotiations.