Over at Equitable Growth: Very Rough: Exploding Wealth Inequality and Its Rent-Seeking Society Consequences: (Early) Monday Focus for October 27, 2014
Afternoon Must-Read: Carter Price: Why Should Policymakers Care About Economic Inequality?

Afternoon Must-Read: Jon Cunliffe: Bankers Earn Too Much, Reducing Returns to Investors

Paul Hannon: BOE’s Cunliffe Says Bankers Earn Too Much, Reducing Returns to Investors: "Mr. Cunliffe... noted that bankers continue to be paid very highly...

...relative to the returns they generate for shareholders. ‘Another driver of low returns on assets and equity is the fact that banks’ pay bill has not adjusted to the smaller returns banks are now earning,’ he said. ‘Put simply, shareholders have gone from getting 60 cents for every dollar in pay for staff to getting 25 cents per dollar.... But, given lower levels of leverage, it is unlikely that we will see, or want to see again, the returns on equity that we saw before the crisis. In the new world, pay bills may well have further to adjust.’