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Originally Posted by shah269
In 2009 Deutsche Bank awarded an €80 million bonus to Christian Bittar for his contributions to the firm during 2008, the year the crisis hit. The bank had only had time to pay him about €40 million of this amount, however, before deciding in 2011 that it should fire him for his role in manipulating Libor rates prior to and during the crisis.
It’s clear that fixing Libor rates is wrong, and destructive to the financial and larger socio-cultural system. But it’s also clear that if a system offers an €80 million jackpot to anyone who can get away with cheating (or only €40 million if you get caught), then it contains the seeds of its own destruction.
Some might disagree with me by arguing that reform should emphasize punishment over reward. Instead of focusing on reducing or eliminating bonuses for everyone, why not focus on punishing the guilty? Wouldn’t that be fairer? It sounds good, but up to now that system hasn’t worked effectively at all. Producing evidence of wrongdoing by specific bank employees, especially high-level managers, is notoriously difficult.
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This is EXACTLY why those who don't know the full story should NEVER attempt to report it.
Why didn't you mention any of these relevent facts:
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One source close to the matter told us Bittar received a bonus of around $50m for a single year between 2008 and 2010 and that his audited profits totaled €1.7bn over the five year period before he left the bank, while those of his desk totalled €3bn. Jason Kennedy at search firm Kennedy Associates says prop traders at banks are typically paid 12-15% of their profits, suggesting Bittar’s total bonuses over five years could have been as high as €255m ($342m). However, another headhunter who declined to be named suggested a 5% cut of the profits would have been more realistic, putting Bittar’s earnings in the region of €85m ($120m).
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http://news.efinancialcareers.com/13...300m-in-total/