Why Wall Street Bonuses Fell 9% in 2015

Why Wall Street Bonuses Fell 9% in 2015

Assessment

Interactive Video

Business, Social Studies

University

Hard

Created by

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FREE Resource

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.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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