Depositors of banks in Cyprus now fear they have less money than they thought while US corporations have plenty of cash to hand – $1.45tn and rising, according to Moody’s. But whose money is it, anyway? Read more
I struggle to see any logic behind the European Parliament’s latest initiative to crack down on financial industry pay, beyond a dislike of bonuses. The idea that investment funds should be treated similarly to systemically important banks has even less merit than the original idea.
The basis on which the EU proposed to rein in bank bonuses – despite UK opposition and criticism from supervisors including Andrew Bailey, the incoming head of the Prudential Regulation Authority – was that excessive bonuses gave bankers a perverse incentive to take risks. Read more
It has been a frustrating week for well-intentioned and interventionist political leaders. Michael Bloomberg and David Cameron have been roundly defeated in their efforts to prod citizens into health. Read more
The article by Erin Callan, former chief financial officer of Lehman Brothers, on how she lost herself in work, is an interesting reflection not only on women on Wall Street, but also on how relentlessly many bankers work.
Ms Callan, who lost her job in 2008 “amid mounting chaos and a cloud of public humiliation only months before the company went bankrupt”, writes in the New York Times of the extreme work culture at the top of the former investment bank: Read more
Prince Alwaleed bin Talal is unhappy with Forbes magazine, accusing it of prejudice in estimating his wealth at $20bn – a mere 26th among the world’s 1,426 billionaires. The Saudi investor has broken off his “longstanding relationship with the Forbes billionaires list” and sought comfort in the Bloomberg Billionaires ranking. Read more
Groupon. Getty Images
Andrew Mason should have been fired as chief executive of Groupon a long time ago. The other pair of insiders that control Groupon should also take responsibility for the disaster of the online coupon company.
Mr Mason’s departure leaves his partners Eric Lefkofsy and Brad Keywell firmly in charge, since they control a majority of the voting shares. Never was the principle of buyer beware more apposite than in Groupon’s dual voting structure. Read more
Marissa Mayer, Yahoo’s new chief executive, has caused consternation by insisting that employees who have worked from home must in future come to the office. Her critics have pointed out that home workers are as productive, if not more so, as those in cubicles. Read more
Sean Fine and Andrea Nix Fine won Oscar for best documentary short. Getty Images
This Oscars had many surprises, including the winner of the best actress award tripping over her dress on the way to collect it. But one interesting innovation was that for the first time, an Oscar went to a crowd-funded film.
Inocente, winner of the best short documentary award, was funded through Kickstarter, the crowd-funding platform on which creative projects solicit donations. The film raised $52,527 in this way.
Inocente was one of three Kickstarter-funded films nominated for Oscars this year, all in the low-cost short film categories. Read more