Banks are paying salaries and bonuses afraid of “losing good people to competitors”.

This is the insanity of the market – it runs itself using protection rackets? The risk taken on insuring Lehman Brothers will drain the insurer who has never paid a claim before.

Meantime, we have this culture of bonuses and how does it really help sure up the position of the Wall Street banking industry?

“At Morgan Stanley, for example, compensation last year was more than seven times as large as the bank’s profit. In 2004 and 2005, when the stock markets were doing well, Morgan Stanley spent only two times its profits on compensation.”

See- NY Times