Leaders
Sovereign default? Only if they want to
"If international markets take precedence over the democratic process, there is something wrong with the system." These might sound like the words of Greek prime minister George Papandreou, confronting the fury unleashed by global investors on Greek sovereign spreads since late 2009. However, they are actually the words of another George, one who has made his fortune betting against government policy and against European monetary union - George Soros.
Viewpoint
How technological evolution can help the post-crisis world
Jim Hagemann Snabe, Co-CEO, SAPThe recent management reshuffle at business software maker SAP led to the departure of the chief executive Leo Apotheker. His replacement as one of two co-CEOs, former head of product development, Jim Hagemann Snabe, gave his view of the post-crisis world in an interview with The Banker's editor Brian Caplen at Davos just before the announcement of his promotion.
Bracken
The uncosted rewards of bankers' bonuses
The Bracken column is named after Brendan Bracken, the founding editor of The Banker in 1926 and chairman of the modern-day Financial Times from 1945 to 1958.A bank employee recently asked me: "As a trader, my bonus is derived directly from my profit and loss, which is accrued over the quarter and kept in a separate account. It does not go into the firm's bottom line and then back out to me. Also, like most traders, I accrue 2% of my gains in a loss provision account in case I have a major write-down in the year. My bonus is 10% of my profit for the year. If I make $50m for the year my bonus is $5m. What does my bonus have to do with the mortgage-backed securities [MBS] trader who is sitting on losses? Did I or did I not show a profit of $40m to the firm's bottom line?"
