Federal Reserve proposes to monitor banker pay

Perhaps, but does anyone out there really trust Bernanke? For that matter, Geithner would be included as well since he was in charge of the NY Fed last year during the bailout. Even the best of intentions and ideas are viewed with suspicion after this bonus fiasco which is still playing out. Even looking back, it’s hard to believe that the Fed was not aware of what was going on during the credit bubble before it burst. There’s a significant trust issue here and it’s yet to be resolved.

The Federal Reserve for the first time would police banks’ pay policies to ensure they don’t encourage employees to take reckless gambles like those that contributed to the financial crisis, according to a proposal unveiled Thursday.

Unlike a Treasury plan to slash pay at certain companies that were bailed out with large sums of taxpayer money, the Fed proposal would cover thousands of banks, including many that never received a bailout.

An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

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