I think we see things very similarly, and I also hate the language of "over compensated" as it implies there is some arbitrary fair level of compensation.
On the other hand, financial institutions in America have received a lot of compensation that was not "fair", it was just handed to them by governments. If they had been competing fairly most of the major banks in the US wouldn't exist anymore.
We really have not had free capital markets since 2008. We have centrally planned rates, centrally planned liquidity, centralized buyers in debt markets. It's really a mess and very few of the outcomes of this system are fair by any metric.
On the other hand, financial institutions in America have received a lot of compensation that was not "fair", it was just handed to them by governments. If they had been competing fairly most of the major banks in the US wouldn't exist anymore.
We really have not had free capital markets since 2008. We have centrally planned rates, centrally planned liquidity, centralized buyers in debt markets. It's really a mess and very few of the outcomes of this system are fair by any metric.