Hands Says Banker Pay Takes From the Economy, Telegraph Reports

Dec. 27 (Bloomberg) -- Guy Hands, the private-equity investor, said bankers’ pay attracts “many of the most talented individuals in society,” removing them from jobs in the “real” economy, the Sunday Telegraph reported, citing a letter to investors in his Terra Firma Capital Partners Ltd.

Hands said banking jobs remove workers from “more entrepreneurial, creative or leadership roles,” according to the Telegraph. Bankers get paid 60 percent to 80 percent of profits when business goes right while shareholders and the government pay the costs when business goes wrong, Hands said.

Recovering equity markets after the worst global recession since World War II are a sign that “for a while we have pulled back from the brink,” the Telegraph said, citing Hands. “The fundamental cause of the crisis, primarily that the West is living beyond its means on borrowed money from the East, has yet to be addressed.”