JP Morgan will Claw Back executive compensation from "certain execs" because of a paper loss that the media has determined to be this incredible "A-HA!" moment. Acording to these morons: "It's the fair thing to do because they have too much money anyway..."
Has it occurred to the brain-trust in the media that incentive compensation is rarely in the form of a wheelbarrow full of money? I don't need to post all the wonderful methods of incentive compensation that are currently in practice, because - after all, CNBC and anyone else that sells News should be required to investigate before they pontificate.
Does CNBC realize that without all those "rich traders" their services may no longer continue to be required? I guess they'd need to hire more blonde's since nobody with a financial-pulse would continue to have an interest in their "product".
See the beautiful Stone Crab Claws in the picture. They are very expensive outside of Florida. They are quite yummy and many a wall street themed steakhouse seafood tower is gloriously crowned with their presence.
The crabbers don't kill the the crab in order to present you with a bouquet of crustacean goodness... no sir, they pluck one claw from the living crab and immediately return it to the sea to resume its life of eating stuff and producing offspring that will provide us with many succulent crab claws for generations to come... The harvested appendage eventually grows back. It is a harmless process and the crab becomes whole again, the crabber makes money, the restaurants get stocked, the waiter delivers the seafood tower, and the politician with his donors get to eat the fruit of the labors.
Think of the banker or the trader as the lowly stone crab. The opinion of the media and liberal politicians is to kill the crab in order to harvest both claws. They reason that because the crab retains one claw it has unfairly possessed this extra claw and should be punished. As a result crab stocks decline and entire businesses built around the Stone Crab wither away and die.