How can you argue against Mervyn King on this point? How soon everyone forget that we're in this mess because of high risk taking by the bankers. The high risk trades helped generate the high income bonuses. They also triggered the collapse of the financial sector yet they've hardly been scratched because of cowardly politicians who are terrified of taking on the banks.
King attracted a warm reception from a packed hall in central Manchester when he made clear his own views on bank bonuses.Indeed. Precisely what value or contribution have the bankers made? They somehow believe that their modern "financial engineering" provides something well beyond bigger bonus money. It doesn't. It's all about the bonus.
"I understand the strength of feeling," he said. "I'm surprised it often hasn't been expressed more deeply. I certainly understand that."
King, who has been given new responsibilities for governing the regulation of the financial sector, said Britain's financial systems needed "radical reform" to avoid a repeat of the crisis that put both the economy and union members' livelihoods at risk.
Improved regulation would mean that banks that "get it wrong" in the future "must be allowed to fail", to avoid ordinary depositors or taxpayers paying the price, he said.
He told the TUC conference that most people in the country did not object to others earning more than them – even a lot more – provided they understood why, and saw the contribution the better-paid had made.
