In the United States animosity still lingers between the highly compensated financial elite, and the average working American. Billions of taxpayer dollars were pumped into insolvent financial institutions in 2008 and 2009 to keep them from collapsing completely.
Now, bankers and finance executives are rewarding themselves handsomely – with your money – for the good work they did in staving off disaster.
At least, that is the case in the United States; where financiers have been able to walk away with billions of dollars and virtually no government regulatory framework. In Europe the situation is much different.
According to Bloomberg News, Credit Suisse Group will have to tighten its executive compensation structure in order to deal with extra taxes imposed on their bonus structure. Credit Suisse, the largest bank in Switzerland, told 400 of its own managing directors that their bonus payouts would be cut an additional 30 percent.
Credit Suisse's hand was forced by a U.K. bonus tax that will take 50 percent of all bonuses in excess of 25,000 pounds (roughly $41,000). The bank wants to avoid paying the government whenever possible, and if it simply continued lavishing bonuses on executives, half of that money would be sent too the government. However, if the bank cuts its bonuses, it will pay less in taxes this year – and likely repay the executives next year after the tax has run out.
read the http://www.economyincrisis.org/content/emphasis-profit-above-other-values-led-crisis
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