MacroScope

Central bankers come out on top in cost-benefit analysis

September 11, 2009

Bankers worried about losing their bonuses might be well advised to consider a cost-benefit analysis of the contribution of their public sector colleagues.

Central bankers not only earn much less than their high-flying private sector counterparts, but over the last year have spent almost every second weekend in high-level, save-the-world meetings aimed at clearing up the mess created by Wall St and City banks.     

European Central Bank head Jean-Claude Trichet (who earns a mere 350,000 euros a year ) confessed to a group of student journalists that he spends almost every weekend working.

“My week often consists of seven working days, because we always have international meetings during the weekends,” he was quoted as saying by Germany’s Frankfurter Neue Presse. 

Trichet spent last weekend, for example, at the G20 meeting in London followed by a meeting of central bankers and regulators in Basel to thrash out a new framework for bank regulation.

One of the proposals: supervisors should make sure banks ”limit excessive dividend payments, share buybacks and compensation.”

Comments
4 comments so far | RSS Comments RSS

Jean-Claude Trichet’s 350,000 euro payday is a great paycheck! It amounts to 6730 euros per week! However, I do not begrudge him the money. He works hard for it and strives to protect his industry from risk and greed. Those guys on Wall Street,,,,they think pretty highly of themselves for a bunch of high stakes gamblers using other people’s money. I’m among those who feel that when I make a mistake ,, I pay the price. (reinforced by banker’s belief that I should do exactly that) When a banker screws up,, he gets a bonus and a bailout. Not exactly a level playing field, is it? But what’s my opinion worth? ,, I don’t grease political wheels with mega bucks contributions.

Posted by RH Pyle | Report as abusive
 

Perhaps if the central bankers had worked as hard prior to the crisis it would not have occurred.

Posted by Steve Numero Uno | Report as abusive
 

Those in the private sector should be subject to pay and compensation equitable to those of their public sector colleagues. No matter how one attempts to twist it around in an attempt to justify the multimillion dollar salaries and bonuses in the private sector—it simply doesn’t fly. Not when the government and the taxpaying public have been forced into owning and paying for the failures of those overpaid dimwits who created the debacle we presently refer to as the world economy.

Posted by Filipe | Report as abusive
 

I feel the more money you make, the harder you should work. As banks make most of the money, they need to work the long hours. So they can see what it is like to try an pay off a huge mortgage.

 

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