Some poignant (and infuriating) insight from Chris Arnade on
Why it's smart to be reckless on Wall St.:
... asymmetry in pay (money for profits, flat for losses) is the
engine behind many of Wall Street’s mistakes. It rewards short-term
gains without regard to long-term consequences. The results? The over-reliance on excessive leverage, banks that are loaded with opaque financial products, and trading models that are flawed. ... Regulation is largely toothless if banks and their employees have the financial incentive to be reckless.
Only 16 companies in the 1,000 were able to avoid a 5 percent decrease in efficiency over the fast cash loans past three years in at least one of the important metrics: day's sales outstanding,
ReplyDeleteasymmetry in pay (money for profits, flat for losses) is the engine behind many of Wall Street’s mistakes. It rewards short-term gains without regard to long-term consequences. work in retail
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