Bank Crises and Bankers' Renumeration

Fact: Major international banks are facing massive write-downs in billions.

Fact: Central Banks and at least one Sovereign Wealth Fund (SWF) I know have dished out rescue packages.

Fact: Money from Central Banks and SWFs come from tax payers, indirectly, and some would argue directly. That means your money and my money, directly, indirectly.

Shocking Fact: A recent research conducted by Breaking Views revealed that the total compensation at the 5 largest US investment banks total a little less than USD$66 billion in 2007.

More Shocking Fact: That $66 billion of renumeration managed to deliver a $50 billion reduction in the banks' aggregate stock market value over the course of 2007. Put it in another context: bankers at those banks were each rewarded with $350,000 for diminishing the value of their business by $247,000 EACH, over the course of 2007. And that reduction numbers are mounting still....

Enough facts to digest? Let me summarise for you: The average taxpayer like you and me are funding the high stakes gambles of the high-living high rollers.

And may I be allowed to quote a certain man of deep insight: "....profits are privatised but risks are socialised..."

reference: http://www.breakingviews.com/