... asymmetry in pay (money for profits, flat for losses) is the engine behind many of Wall Street’s mistakes. It rewards short-term gains without regard to long-term consequences. The results? The over-reliance on excessive leverage, banks that are loaded with opaque financial products, and trading models that are flawed. ... Regulation is largely toothless if banks and their employees have the financial incentive to be reckless.
Tuesday, March 12, 2013
Some poignant (and infuriating) insight from Chris Arnade on Why it's smart to be reckless on Wall St.: