President Obama hits out at bank bonuses
Friday 04 July 2014
President Barack Obama has warned US banks that the bonus-driven culture of Wall Street is still a risk to the stability of the financial system.
President Obama told radio service American Public Media that reform of banks' incentive systems was an "unfinished piece of business".
He added: "Right now, if you are in one of the big banks, you can generate a huge amount of bonuses by making some big bets on the trading desk. But if you make a really bad bet, a lot of times you've already banked all your bonuses."
The average Wall Street bonus last year was $164,000 (£95,600) – the highest since the financial crisis of 2008. The total bonus pool rose by 15 per cent to $26.7bn. Mr Obama said recent reforms had provided some protection for taxpayers but not enough. "That's going to require some further reforms," he said.
The President added that he had told his economic team at the White House "to continue to see how we can rebalance the economy sensibly, so we have a banking system doing what it is supposed to be doing to grow the real economy".
- 1 The black and blue dress: Makers considering a white and gold version
- 2 Husband and wife die holding hands within hours of each other after 67 years of marriage
- 3 PornHub turns masturbation into energy in bid to save the planet
- 4 The remarkable archaeological underwater discovery that could open up a new chapter in the study of European and British prehistory
- 5 Saudi Muslim cleric claims the Earth is 'stationary' and the sun rotates around it
Boris Nemtsov shot dead: Putin critic may have been murdered by Islamic extremists, says president-led committee
Stephen Hawking's wife Jane Wilde on their marriage breakdown: 'The family were left behind'
British are sexually uptight, dirty and drink too much – according to Spanish book
PornHub turns masturbation into energy in bid to save the planet
White and gold or blue and black – what colour is the dress? An eyewitness gives a definitive answer
New theory could prove how life began and disprove God
This is what it's like to be dead, according to a guy who died for a bit
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Ukip would cut billions from Scottish budget to fund English tax cuts
Russia's roadmap for annexing eastern Ukraine 'leaked from Vladimir Putin's office'
iJobs Money & Business
£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...
£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...
£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...
£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...