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Pay Bankers No More Than Civil Servants, Says Ex-Cameron Aide

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If he gets to Conservative leader maybe it'll become policy - or maybe not. He's not an MP.

Again an interesting article published nearly 2 weeks after the general election and 4 years and 50 weeks before the next one. Great timing.

Edited by billybong

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Brought a smile to my face that someone with such views has found a position of potential influence

Roger Bootle, an occasional economic advisor to the conservatives in government, has come out with this on his latest opinion column for the telegraph economics section:

"There are also two quite different, related, areas where the market works extremely badly and where this Conservative government needs to act, namely the processes governing the decisions on executive pay and the determination of real investment by companies. In short, there is a huge problem with the way the modern corporation works, with its legal structures, the mix of rights and responsibilities for shareholders, and the incentives to take the long view.

It is not enough for a government that favours markets to concentrate on reforming welfare and the laws governing trade unions. Companies are the main institutions of the market economy. In so many ways, they are in need of radical reform. If we experience another five years of egregiously excessive executive pay, ludicrously warped incentives and behaviour in the financial system, combined with pathetic levels of business investment, then it will be more difficult to argue that the market economy delivers for everyone."

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Is this a Sir Humphrey style wheeze to get senior Civil Servants pay increased?

That was my first thought, why should civil servant pay levels be a benchmark for anything?

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Well should bankers become civil servants in the event of a bailout (and their pay/bonuses changed instantly to reflect this) then it may just maybe make these paragons of capitalism take risk a little more seriously!!

Which is why this will never happen

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then it will be more difficult to argue that the market economy delivers for everyone.

Awwww-that is so cute, he still thinks there's a free market- like a child believing in fairies. A crony capitalist who doesn't even know he's a crony capitalist cuts a comical figure.

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i sort of disagree with this.

banking,if done properly,is a conduit for efficient resource allocation

...if someone has a good idea to create widgets that allow people to do more with less,then banks should be fully entitled to invest in the project,get it off the ground and allow the inventor of said widget to expand his/her business and that is a net benefit to society in general.

they should not, however, expect to be bailed out if they make a bad bet

they should take their licks like grown-ups.(in essence they need to seriously curtail their leverage, or at least have their own war-chest to cater for economic downturns and business failures- that's what interest is meant to be for- it's a risk premium.

if they have not made adequate provision,then the fitter ones can make a play for the assets of the weaker.

they should certainly not expect any special treatment from lobby groups and politicians,,in fact, the latter should be under extremely strict penalties for ANY acts of incentive to vote a certain way for a certain clique/conflict of interest.

...and that would be under penalty of seizure of assets,a long stint in jail,or in the worst circumstances we adopt the chinese approach to corruption.

Edited by oracle

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