Why Wall Street Bonuses Fell 9% in 2015

The video discusses banker bonuses, focusing on the historical context, regulatory debates, and the impact of the financial crisis. It highlights how Wall Street firms adjusted to post-crisis realities by reducing discretionary pay and how EU regulations, like the bonus cap, affect global banking operations. The video also covers the deregulation of the 1980s that led to inflated bonuses and the subsequent reforms after the financial crisis, emphasizing the competitive disadvantage faced by European banks due to stricter regulations.

What was the primary reason for the decline in Wall Street bonuses post-financial crisis?

• Regulatory interference in compensation practices

• A shift towards more fixed salaries

• A decrease in discretionary pay due to low growth

• Increased competition from European banks

How do European regulations affect the bonus structure of banks?

• They allow unlimited bonuses for top traders

• They cap bonuses at twice the fixed salary

• They eliminate bonuses for all employees

• They require bonuses to be paid in company stock

What historical event led to the significant increase in banker bonuses in the 1980s?

• The introduction of the EU bonus cap

• The deregulation of commercial banks

• The financial crisis of 2008

• The rise of digital banking

What was the only major reform to emerge from the financial crisis regarding banker bonuses?

• The elimination of bonuses for all bankers

• The EU bonus cap limiting bonuses to twice the fixed salary

• The requirement for bonuses to be deferred for five years

• The introduction of a global bonus cap

Why is the UK interested in a more flexible approach to banker bonuses?

• To align with US regulations

• To maintain the City of London's status as a global financial hub

• To reduce the tax burden on banks

• To increase transparency in financial reporting