“Die größte Gefahr sind Händler die zu viel riskieren (The Biggest Dangers are Dealers Who Risk Too Much)”
In the August 3, 2010 issue of Die Welt, Booz & Company CEO Shumeet Banerji said the keys to economic recovery are providing higher incentives for bank supervisors and stricter regulations for bonus payments. “We need a stronger banking supervision in the micro-perspective,” said Banerji. “Supervisors must intervene, for example, if a dealer is able to reap high profits with infinite risk, but is not penalized for losses. We must monitor the incentive structures in far greater detail than before. It is not enough to extend the holding period for shares received by a manager as compensation.” So who failed in the recent global slowdown? Both bankers and regulators, Banerji added. To get the economy moving again, “if the boards of the banks do not (act),” he said, “regulators must ensure that the systems are changing.” Banerji also spoke to Handlesblatt in the August 3, 2010 article, “Falsche Anreize haben die Krise geschürt (Wrong Incentives Fueled the Crisis”).