All the mortgage originators that submitted bad loan apps, knowing all along that is what they were doing, did not start off as fraudsters. Senior management made fraudsters, even banksters, out of them.
In 1890, J.P. Morgan pulled in close to 20 times what his employees did annually. Today, CEOs earn more in three hours than minimum wage workers do in a year. This imbalance is both irresponsible and irrational.
The same people who told us the market would deal efficiently with subprime mortgages and credit default swaps are throwing up their hands and saying that the market will deal efficiently with CEO pay. But it doesn't, and it won't.