Simon Johnson on Bank Bonuses and ‘Too Big to Fail’
Editor’s note: The clip today in our continuing series of video conversations with economist Simon Johnson, author of the popular Baseline Scenario blog, which Paul Krugman calls a “must read,” concerns whether bank bonuses are deserved and whether anything can be done about the issue of ‘too big to fail.’
Here’s a snippet:
Johnson: One CEO said to me recently the cult of size on Wall Street is finished. People used to ask him, when are you going to acquire things and become bigger? Now they don’t ask that anymore. But there’s not much market pressure to become smaller.