In today's Channel 4 News Mr Brooks Newmark MP discussed the EU proposal to cap the bankers bonuses to twice their salaries with a Swedish MEP Mr Olle Schmidt. Mr Schmidt argument for such a move was predominantly based on the public outrage about the bankers who engineered the current financial mess and are still handsomely rewarded for causing such disaster. Mr Newmark argued against limiting the bankers' bonuses as it would make the industry leave Europe (and the UK in particular). Instead he suggested that there should be an analysis of banks' balance sheets in the context of the credit risk.
Clearly, as Mr Schmidt admitted, his argument was political. Mr Newmark argument was professional, getting into the crux of the current financial situation. It appears that he was also right but most likely - as the context and the tone suggested - not in a way he actually intended.
If the analysis that Mr Newmark suggested had been done, it would have showed without any doubt whatsoever that the financial industry engineered and ran a giant global pyramid scheme that led to the systemic collapse in 2008. Basically the industry had been degenerated by those who had run it into a criminal enterprise operating according to exactly the same mechanisms as pyramid schemes in Albania in 1996 - 1997. In this case the bankers - most likely with very few exceptions and mainly on a junior level - should not only lose their jobs (hence any prospective salaries and bonuses), but also their liberties and any wealth (in order to compensate for the massive losses that they caused). If Mr Newmark's recommendation was followed scrupulously, the City would be turned into a giant prison (as this, quite likely, would have been cheaper than building new ones).
Mr Newmark, you may just have to be a little bit careful what you wish for.