Fed plans to approve banking salaries: report
Want to read something really scary? Here ya go...
Fri Sep 18, 5:04 AM NEW YORK (AFP) - The Federal Reserve would be required to approve salaries for tens of thousands of US bank workers, as part of a plan to curb risk-taking at financial institutions, The Wall Street Journal reported Friday.
Fri Sep 18, 5:04 AM NEW YORK (AFP) - The Federal Reserve would be required to approve salaries for tens of thousands of US bank workers, as part of a plan to curb risk-taking at financial institutions, The Wall Street Journal reported Friday.
"The Fed's plan would, for the first time, inject government regulators deep into compensation decisions traditionally reserved for the banks' corporate boards and executives," the report said. The proposal would see the Fed empowered to ban any compensation policies it believes encourage bank employees -- from chief executives, to traders, to loan officers -- to take too much risk.
"The US' largest banks, about 25 in number, would get especially close scrutiny.
"The US' largest banks, about 25 in number, would get especially close scrutiny.
A final proposal "is still a few weeks from completion and could be revised along the way," the report said citing unnamed persons familiar with the matter. The move requires a vote by the Fed board, but not a Congressional green light.
How scary is that? The last line in the story states: France and Germany, Europe's leading economies, are lobbying for strict limits on executive's compensation.
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