from the world's big
Leif Pagrotsky on Wall Street Excess
Question: What is Wall Street’s fundamental flaw?
Pagrotsky: What disturbs me about Wall Street is not that individuals who bet their own money can win if they are smart. What disturbs me is the reward system in general for employed people, that if you take big risks, if you incur big risks for your company, big risks are usually connected with high prices. Then, you earn a big bonus. But when that risk materializes and you lose, you don’t lose. Somebody else loses. Maybe not even your employee. Maybe the taxpayers. I think the bonus system, the way it has been designed in the United States, on Wall Street in particular, has amplified volatility in the markets. It has produced excessive risk taking, it has produced the excesses in lending to people who cannot pay interest on their debts, for instance, and I think that is at the heart of this problem, and when we come out of this, I say ‘we’ because we are the same in my country as well, this must be part of the lesson learned. This is a destabilizing force that should be part of regulation. I’ve had a public debate with the regulators in my country who say that the remuneration system is something between employees and employers in the financial industry. I say it is not. It is a matter for the regulators because the way remuneration is designed is an important element in stability versus instability of these markets, and that cannot be left to market participants alone.
Rewarding the financial industry for missteps and passing the buck is inherently wrong, says Leif Pagrotsky.
Join the legend of non-fiction in conversation with best-selling author and poker pro Maria Konnikova.
Study finds quantum entanglement could, in principle, give a slight advantage in the game of blackjack.
The space tourism company Virgin Galactic teams up with Rolls Royce to create a new Mach 3 supersonic aircraft.
- Richard Branson's Virgin Galactic has announced a partnership with Rolls Royce.
- The space tourism company will create a new supersonic jet for super-fast travel on Earth.
- The aircraft will travel at Mach 3 – three times the speed of sound.
Credit: Virgin Galactic
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China moves to Russia and India takes over Canada. The Swiss get Bangladesh, the Bangladeshi India. And the U.S.? It stays where it is.
What if the world were rearranged so that the inhabitants of the country with the largest population would move to the country with the largest area? And the second-largest population would migrate to the second-largest country, and so on?
Andy Samberg and Cristin Milioti get stuck in an infinite wedding time loop.
- Two wedding guests discover they're trapped in an infinite time loop, waking up in Palm Springs over and over and over.
- As the reality of their situation sets in, Nyles and Sarah decide to enjoy the repetitive awakenings.
- The film is perfectly timed for a world sheltering at home during a pandemic.