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  Keith your argument only holds true for the public sector, the private sector pays what it believes it has to pay to keep and reward its talent. As for the banks there is an argument to be made that HBOS & RBS should be much more ruthless with their remuneration policy and practice as they are state owned, it holds much less water when you talk about HSBC and Barclays who had minimal state support. Having said that they all reported profits recently so not sure where you get the "losses" bit from.
  
  Equally it might also be an argument to pay the PM and by extension Ministers and MPs more; though probably not politically expedient when you are putting people out of work.

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