Proletarian Bankers Feeling the Capitalist Yoke

Banks are systematically cutting the share of revenue that goes to employee compensation in response to shareholder demands for higher returns. Equity capital requirements may be responsible.

Banks have long been oddities -- fiercely capitalist in their treatment of others, yet run like Marxist bastions where labor, rather than capital, captured much of the value created. (Just look at the share of revenues that went to employee compensation before the crisis, or the bizarre fact that, in essence, banks only adjust their balance sheets by borrowing more or less rather than issuing or retiring equity.)

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