President Obama: We have 'unfinished business' curbing Wall Street bonuses
President warns bonus-driven culture poses a risk to the stability of the financial system
President Barack Obama has warned America has "unfinished business" curbing the excesses of bonus-driven Wall Street.
Speaking on radio service American Public Media, Mr Obama argued that reforms are still needed because risk-taking and big bonuses remain a major incentive for traders.
"If you are in one of the big banks, the profit centre is the trading desk and you can generate a huge amount of bonuses by making some big bets," he added. But, if you "make a bad bet, you might end up leaving the shop, but in the meantime everybody else is left holding the bag".
The president argued recent reforms, such as the Dodd-Frank act, have helped protect taxpayers but taming Wall Street is "going to require us looking at additional steps", without going into further details.
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 $26.7 billion.
Mr Obama added that he had told his economic team at the White House “to continue to see how we can re-balance the economy sensibly, so that we have a banking system that is doing what it is supposed to be doing to grow the real economy”.
- 2 Russian girl takes her own life after parents find pornography on her computer
- 4 Ball pool for adults opens in London
- 5 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
Russian girl takes her own life after parents find pornography on her computer
Kim Kardashian on Bruce Jenner's 'story': 'We support him no matter what, and I think when the time is right, he'll talk'
Michelle Obama highlights harsh restrictions faced by Saudi women after meeting King Salman without wearing a headscarf
Ball pool for adults opens in London
Amal Clooney gives excellent response to fashion question at European Court of Human Rights
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
iJobs Money & Business
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...
Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...