Note: This is the original longer version of an Opinion Piece arguing for imposing caps on banker bonuses that appeared in the Guardian newspaper on the 25th of Feb 2013.
The European parliament is right to limit the maximum bonus bankers can command as a proportion of base salary. This will help tackle the culture of excessive risk-taking and the bending of rules that has now become endemic to banking. Undertaking this at an EU-wide level will also limit any large-scale migration of the so-called ‘talent’. It will reduce the risks borne by tax-payers and go a long way to rehabilitate the industry, making it focus on serving the real economy again.
The world has still not recovered from the most serious financial and economic crisis in recent history. This exposed several aspects of financial system dysfunction which not only increased the instability of the financial markets but also impeded their normal functioning as tools to allocate economic resources efficiently throughout the real economy. Policy maker response to this crisis remains very inadequate and will do little to correct the deep structural flaws exposed by the crisis.
In this new set of blog posts, we will serialize our 2009/2010 e-book "The Financial Crisis - Causes & Cures" which was written for both the layperson as well as policy-makers at the European Parliament, the European Commission and national finance ministries and regulators. The book may be a bit dated, but the issues are current.
Transcript of a Keynote Speech I delivered In Berlin on the 15th Sept 2010
The world has been rocked by the most major financial and economic crisis in recent history. This exposed several aspects of financial system dysfunction. These not only increased the instability of the financial markets but also impeded their normal functioning as tools to allocate economic resources efficiently throughout the real economy.
In a new Re-Define policy brief we have addressed the all important question of the incidence of financial transaction taxes, seeking to answer the question ‘who pays in the end’, should FTTs be widely introduced. We also demonstrate how a differentiated transaction tax regime can address market behaviour issues such as churning and excessive short termism as well as help reduce systemic risk.
6 hours 48 min ago —
This is big...for #France :-) next English as second Lang :-) “@PlaceLuxEU: France approves English language classes http://t.co/MdAjgA8qSd
9 hours 49 min ago —
Enjoying a pint with @LorcanRK who I have finally had the pleasure of meeting face to face :-)
17 hours 40 min ago —
The #bankingunion is essentially a back door covert #fiscalunion
19 hours 37 min ago —
I thought those calling 4 a #Lehman like moment in #EU were idiots; I am starting 2 think I was an idiot 4 calling them names - complacency
1 day 6 hours ago —
Irony? “@moorehn: I assume UK will stop criticizing US gun laws after meat-cleaver street beheading? http://t.co/sb5mLVZ1Xj”
Note: This is the original longer version of an 
Transcript of a Keynote Speech I delivered In Berlin on the 15th Sept 2010
Financial Transaction Taxes: Tools for Progressive Taxation and Improving Market Behaviour