Pay rules: Bureaucratic nightmare in the making?

A report by PriceWaterhouse raises the spectre that new pay regulations could be applied to thousands of financial services firms. While the usual sham 'consultations' are conducted by the FSA we can confidently predict that by implementing new pay regulations beyond the small group of systemically important banks the dead hand of government would certainly make one mighty step towards killing the goose that lays the golden (tax) eggs in the City of London.
The average employee has zero influence on the overall risk profile and financial performance of his employer. A small circle of top managers is wholly responsible for the success of any enterprise in our system of corporate governance and any major delay in paying the much-needed pay-checks to staff further down the rung will only massively demotivate staff - and in many cases make them willing to consider a move to friendlier shores.

Verdict on Dood-Frank bank reforms

This quote (Liam Halligan, Sunday Telegraph, 25 July 2010) says it beautifully:

"Based on sound-thinking courageous judgement, the Glass-Steagall legislation was only 17 pages long. Packed with wheezes and loop-holes, Dodd-Frank runs to 2,319 pages. Enough said"

Limits to Vulture Funds?

A report about buyers of under-performing mortgages trying to strong-arm borrowers points to the problems that can be created by unfettered trading in loans. What treatment can borrowers - be they individuals, companies or countries - expect in a financial environment where every loan is for sale? Borrowers select lenders not only on price but also on reputation. They want to know who they deal with and do not expect the representative of an aggressive vulture fund to knock on their door if they struggle to meet repayment terms.