“Bank bonuses make a comeback”

This was the front page headline of the Wall Street Journal Europe on Wednesday.

Major US financial firms are “on-track” to pay about $140 billion this year. The Wall Street Journal analyzed 23 publicly listed firms so that figure does not include unlisted Hedge Funds or Private Equity firms!

The Journal says that asset managers and traders can expect to earn even more than they did in 2007, before the crisis. This week, JP Morgan also announced record profits for the third quarter. Stock markets have rebounded.

Yet unemployment keeps rising. So what is happening? A couple of months ago this blog dismissed the idea of a “jobless recovery”. But it is actually happening. After all the damage caused by irresponsible behavior, after all the massive government bailouts, the financial sector has gone back to earning big bucks. But millions of working families continue to face the consequences – lost jobs, lost houses. Thousands of small and medium enterprises are struggling to keep going. Local municipalities face cuts in revenues and cuts services.

There is a pervasive sense of exasperation – in the media, among political leaders. The exhortations of G20 leaders have evidently had little effect. While the opportunity to reap short-term profits is there, people in the finance sector will take what they can.

Back to that headline. US$ 140 billion would provide more than enough funding to meet the objectives of the Millennium Development Goals, including Education for All.

Today, we call on EI members to support the Global Call to Action against Poverty.

Somehow, we have to find a way of getting priority for equity and justice to the top of political and economical agendas!