Column : I-Banks, rest in a different piece

Font Size

Print

Feedback

Email

Discuss

: Interestingly enough, the I-bank which gave the highest average bonuses in 2006, Goldman Sachs, was the one independent investment bank which may have survived the storm—its balance sheet was a lot healthier than, say Lehman or Merrill, which paid only half of the Goldman average to their employees. Still, Goldman may be the exception rather than the rule and there is a case to debate the way corporate bonuses should be paid out: should they be taxed extra? Should they be given out over five-year periods? Should they be given out in the form of stocks only? The jury is out and no one can claim possession of all the right answers at the moment.

Let’s face it, though: capitalism is the best system we have, even if it’s prone to ups and downs, booms and busts. Risk-taking is at the heart of a successful capitalist system. We can find ways to prevent outright imprudence, but clamping down completely on risk will be like killing the goose that lays the golden egg.