I could not agree more. With the arrival of Peer-to-Peer Lending, Robo-Advisers, Internet Banking and more stringent (suffocating?) Regulation the writing is on the wall. Could one suspect that the time of excessively generous compensation will also soon come to an end? And maybe the first to feel the impact of a new and more sober climate in banking could be Axel Weber, the UBS chairman, himself. It is difficult to see why the new banking model can support a salary of Sfr 6,000,000 for what is in essence a supervisory role. Banks in the USA get by without a separate Chairman in most cases and the role is much more modestly remunerated in the UK.
11 Apr 2016
Why Europe's Banks don't have enough Capital
Interesting contribution from the Head of Research at BIS. But when the incompetents in Politics
and Regulation have the UK banks pay £45 Bio in penalties for (mostly
ficticious) 'mis-selling' one can only say it is a miracle that the banks are
left standing and the sleepy shareholders (basically the fiduciaries managing
the investment management industry) are not up in arms.
If you want to bleed your banking
system dry there is no better way, similar to Fx and Libor Fixing.
The principles of forensic and
detailed proof are brushed aside in order to score political
points.