Oxford University Study: Curb Bankers’ Pay by Capping Each Bank’s Bonus Pool

UNITED KINGDOM–(ENEWSPF)–26 September 2011.  An Oxford University economist proposes that a cap on each bank’s bonus pool in relation to their balance sheet could be an effective new model to limit bankers’ pay and thereby reduce bank risk. In a new study, Dr John Thanassoulis argues that an adjustable cap at the balance sheet level of each bank would affect weaker financial institutions most, and result in bankers commanding lower rates of pay.