Nassim Taleb: If Bankers Don’t Like Bonus Caps They Should Grow Some Balls And Start A Hedge Fund

“I admire the move by the European Union to restrict the bonuses of that class of privileged civil servants called “bankers” — a recognition that the taxpayers have the right to control the income of those they subsidize and bail out, just as they set the salaries of other state-sponsored workers. Alas, bankers in their current status are an offense to capitalism; they are in a strange situation of having upside without downside, no skin in the game. As an additional insult to the taxpayer, bankers paid themselves the largest bonus pool of their history in 2010 — thanks to Troubled Asset Relief Program. If a banker wants to be free in his income, he should start his own hedge fund. Because hedge fund operators are invested in their funds; they typically have 50 times more risk as a share of their net worth than their largest customer.” [NYT]

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13 Responses to “Nassim Taleb: If Bankers Don’t Like Bonus Caps They Should Grow Some Balls And Start A Hedge Fund”

  1. guest says:

    Cue the "douche", "loser" comments…

    • quant me maybe... says:

      Actually he has a point.

      > Still a douche bag loser for organizing those creepy dissertation defense rehearsals for his grad students in the 'Love Tub'.

  2. biglawinsecure says:

    i for one am disappointing. He finally got a PR firm to throttle down on his funnier comments. The ole "I work out by lifting rocks over my head" or "I have the body of a 20 year old male model" or "the first thing I do when I go to a 3rd world country is to drink the water to toughen up my gut" were all so so great.

  3. KingShekel says:

    I'm a big Taleb fan, so this was a good read. One of the core points to be admired in his books is that those who take risks with their own money/life on the line should be respected for their skin in the game.

    • Really? says:

      Those who build businesses that do productive things and create jobs should be respected for their skin the game. Those who run hedge funds and think they are not benefiting from the same subsidies as the banks … delivered by the banks to their clients via cash and synthetic leverage and by the Fed by one-direction asset price inflation … are delusional megalomaniacs

      • Yes, pretty much says:

        No, they are not. Profiting from distortions caused by those subsidies is not equivalent to directly profiting from those subsidies. 2,000 hedge funds failed last year. How many were bailed out?

  4. KennyPowersCFA says:

    Wait I get to control the incomes of civil servants? Someone get DeBlasio on the horn.

  5. Ted E. says:

    For me, it's impossible to read "skin in the game" without hearing Nassim spitting out the phrase in my head.

  6. FCA Laws says:

    FCA laws acts as an effective tool in the hands of the common citizens to keep check on the fraudulent claims.