Nouriel Roubini: How to Break Up the Banks, Stop Massive Bonuses, and Rein in Wall Street Greed
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I'd prefer a system in which you don't get the bonus right away—there are clawbacks. Your bonus is put into an account, and then we'll wait and see if three years from now, your investments were really good, or if they ultimately contributed to losses. We need to incentivize bankers and traders not to take too much risk.
What concerns regulators, I think we have to make them more independent to try to prevent regulatory capture—this situation where the bank lobbyists totally corrupt the thinking of the regulators. There are lots of things you can do, and one of them is to just pay them better so that they don't have the same incentive to go and work for the private sector as soon as there's a change in the administration.
Zach Carter is an economics editor at AlterNet. He writes a weekly blog on the economy for the Media Consortium and his work has appeared in the Nation, Mother Jones, the American Prospect and Salon.