James Moore: The Prof has learnt little about bonuses at banks
Outlook "Deeply disturbing," was how the Cass Business School described a letter sent by the Financial Services Authority to the chief executives of various banks as we approach bonus season.
Professor Chris Roebuck fulminated against what he said was a "sting in the tail" of the regulator's demands.
Said the Prof: "The idea that all bonuses should be reduced is a new departure for the FSA, and indeed any regulator. Are we really saying that if you did a perfectly legal and professional job all year, and made money for your organisation, that your pay should be slashed because someone else did something wrong?"
Well, Mr Roebuck, banks are organisations, and organisations are made up of collections of individuals. The Libor and payment protection insurance scandals had their genesis in a debased culture that lots of those individuals bought into and, indeed, contributed to.
As a result those banks have lost a lot of money. The bonus pools that are now being considered ought to reflect that. The FSA is therefore quite right to argue that this year's bonus season shouldn't be very festive.
Cass is a highly ranked, respected and influential institution when it comes to business. If this is an example of its thinking it shows how little has been learnt since the financial crisis.
Undertaker dead hoax: WWE legend not 'found dead in home' as Facebook and Twitter reports
South Korea ferry: Three dead and almost 300 missing as mass rescue gets underway
Malaysia Airlines MH370 co-pilot's phone 'was on and made contact with network tower' 30 minutes after plane turned around
Oscar Pistorius trial: Reeva Steenkamp told athlete she 'loved him' for first time in Valentine's Day card
Lunar eclipse 2014: Images of the spectacular 'blood moon'
David Cameron: 'Jesus invented the Big Society – I'm just continuing God's work'
US Navy christens huge $3 billion destroyer ship USS Zumwalt that appears as a fishing boat on enemy radar
Nigel Farage fatigue? Half of voters ‘immune’ to Ukip’s appeal
The food poverty scandal that shames Britain: Nearly 1m people rely on handouts to eat – and benefit reforms may be to blame
Nigel Farage on Have I Got News For You: Ukip leader ridiculed over expenses and party 'fruitcakes'
Scottish independence: It is the English who should be on their knees, begging the Scots to vote ‘No’
- 1 Refugee facing deportation from Sweden saved by fellow passengers refusing to let plane leave
- 2 Naked yoga: the bare truth - it's already big in the US, and has now landed here
- 3 Man on a leash in Farringdon, London: Mystery of 'walkies' solved
- 4 24 people applied for the 'world's toughest job', here are their interviews
- 5 Drugs giant GlaxoSmithKline bribed doctors to boost sales, says whistleblower
iJobs Money & Business
£40000 - £50000 per annum + BONUS + BENEFITS: Harrington Starr: A leading, Cit...
£35000 - £50000 per annum + Bonus + Benefits: Pro-Recruitment Group: You must ...
£45000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: Corporate Acti...
£350 - £400 per day: Harrington Starr: An opportunity has arisen at a FCA regu...