Want to reform Wall Street bonuses? Try clawbacks.
Out of the 30-odd deals I worked on a Lehman, in at least a dozen the issuer later went bankrupt. But our stuff was often CCC-rated or worse, buyer-beware high-yield debt picked up by hedge funds.
(I think Ritholtz is giving a little to much credit to Knee for the IBG/YBG thing - I understand that as an old bond desk catchphrase... but the rest of the article still holds.)