Beware any financial legislation that passes the House of Representatives rapidly when both the Democrats and Republicans are angry. It will cause a heap of unintended consequences.
That was true of the Sarbanes-Oxley Act of 2002 and it may be even more true of the House’s bill to impose a 90 per cent tax on bonuses earned by employees of large banks that have taken US government capital. It is an ill-conceived and over-hasty piece of populism. Read more