Bonuses: Gold and dross

It’s outrageous for taxpayers to pay huge bonuses to top executives at banks that have lost a fortune. That’s a no-brainer, isn’t it? Many politicians seem to think so. US president Barack Obama talked about “common sense” on pay. UK business secretary Lord Mandelson has warned about the popular backlash from “exorbitant” packages. But crude anti-bonus policies could end up costing taxpayers dear. Josef Ackermann made the point crudely but clearly. The boss of Deutsche Bank, which has so far avo...