Britain has three times as many millionaire bankers as the rest of the EU

And that's a good thing.

If there’s ever been any doubt about quite how big Britain’s banking sector is, the news this week that we have three times as many high earners as the rest of the EU put together should put that doubt to rest. According to the European Banking Association’s report on high earners (those earning more than €1 million a year), in 2011 Britain had 2,436, slightly down on 2010.

Comment has generally fallen into two loose camps: those bemoaning the wanton decadence of such levels of pay, a sore point given the origins of recent economic stagnation, and those who see the report as the cynical stockpiling of munitions for an assault on London’s financial fortress.

Aside from the justified but trite debate on bankers’ bonuses, those actually reading the report will notice how the number of high earners fell from 2010 to 2011 and how average total remuneration per person dropped by 40 per cent, from €2.3 million to  €1.4 million. This may well be due to bankers frontloading compensation to avoid the 50p tax rate introduced in 2010/11, and also due to falling profits. 

British bankers have learnt to seem humble about bonuses, even if it’s not always convincing. Stephen Hester’s claim that his parents think he earns too much shows distance, not humility, and Bob Diamond seems only partially right in saying: ‘This is going to sound arrogant as hell, but I never did anything for money.’

Even if you consider this outsize remuneration situation a disgrace, be wary before you join our European cousins in supporting a twice-salary bonus cap: bonuses can work. Their competitive element and reward for individual success can, in a properly regulated system, spur profit. The EU would stunt this system, rewarding mediocrity and failure through flat salaries. These endorse indolence not enterprise. The same green eyed emotion motivating High Earners is embittering their critics.   

Politicians make headway through headlines; looking to bring the financial services down a peg or two in the envious eyes of those outside the gilded ivory tower will receive acclaim but won’t develop the debate.

This piece first appeared in Spear's Magazine.

Alex Matchett is a writer for Spear's.

Photograph: Getty Images

This is a story from the team at Spears magazine.

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Quiz: Can you identify fake news?

The furore around "fake" news shows no sign of abating. Can you spot what's real and what's not?

Hillary Clinton has spoken out today to warn about the fake news epidemic sweeping the world. Clinton went as far as to say that "lives are at risk" from fake news, the day after Pope Francis compared reading fake news to eating poop. (Side note: with real news like that, who needs the fake stuff?)

The sweeping distrust in fake news has caused some confusion, however, as many are unsure about how to actually tell the reals and the fakes apart. Short from seeing whether the logo will scratch off and asking the man from the market where he got it from, how can you really identify fake news? Take our test to see whether you have all the answers.

 

 

In all seriousness, many claim that identifying fake news is a simple matter of checking the source and disbelieving anything "too good to be true". Unfortunately, however, fake news outlets post real stories too, and real news outlets often slip up and publish the fakes. Use fact-checking websites like Snopes to really get to the bottom of a story, and always do a quick Google before you share anything. 

Amelia Tait is a technology and digital culture writer at the New Statesman.