This will make a simply outstanding race for the bottom study some day some years from now. Dueling regulators, burning to impose salary caps of the like that would trigger severe, acute male pattern baldness in Erin Callan, but restrained by the sinister hand of Regulation No 1612/68 as thousands pour out of the latest salary cap obsessed jurisdiction towards countries where the average level of economic understanding actually cracks the fifth grade ceiling. Sayeth the evil 1612/68:
...mobility of labour within the Community must be one of the means by which the worker is guaranteed the possibility of improving his living and working conditions and promoting his social advancement.
Quitters never win, you capitalist expatriates! We hope you enjoy your time as a stateless drifter, and die poor and without a penny left in your unearned family estate's coffers too. (Can we have your car?)
It is the same old argument. The key objection from banks to a new code from the U.K. Financial Services Authority on bonuses is that it will harm competitiveness, as jobs and tax revenues move to friendlier climates. The argument risks watering down regulatory responses to the recent crisis, as banks grow more confident they are out of danger.
The line has held some sway at the FSA, disappointing those hoping for a stronger stance on pay. Detailed provisions on deferring a significant portion of bonuses and linking the deferred component to firmwide performance now will apply only to senior bankers, rather than everyone. Banks will still be able to pay bonuses if they rack up losses. The FSA argues it is sticking to its guns and that it is determined to enforce these rules.
Yes, we must impose pay caps on every financial center in the known universe.
An Allied Force Is Needed for Bankers' Pay [The Wall Street Journal]
Full Disclosure: Dealbreaker is long popcorn.