Friday, Jan 29, 2010

As if we needed any more evidence that regulation was essential!

BBC: The private thoughts of bankers

One said there was no evidence that bankers were overpaid, because if that were the case the biggest payers of all would have been damaged as businesses over the years of lavishing excessive rewards on their people.
To which the other supremo made the point - or so I am told - that banks are a regulated oligopoly and are not subject to "proper" competition: they are therefore able to pass on the costs of their people to customers.
In other words, banks are able to pay their people more-or-less what they like, free from the market disciplines that apply to genuinely competitive industries.

Posted by markj69 str05 @ 12:07 AM (503 views) Add Comment

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