U.S. Eyes Bank Pay Overhaul

[winston53660]

WASHINGTON -- The Obama administration has begun serious talks about how it can change compensation practices across the financial-services industry, including at companies that did not receive federal bailout money, according to people familiar with the matter.

U.S. Eyes Bank Pay Overhaul - WSJ.com

Hmmmm I lean towards that this should be a shareholder responsibility. But I also think regulators actually need to regulate esp. things like credit default swaps.

 

[Mach]

Hmmmm I lean towards that this should be a shareholder responsibility.

Interesting, thanks for posting this.

I think it's a good idea, at the very least to investigate.

Shareholders were responsible any number of previous times things like this happened, and they failed. Of course, because they have no interest in playing to rules that constrain profit, or a long term stable economy. They have profits, often short-term, as their goal (and we know this and accept it).

All they are doing is looking at some near-universal bad practices, and putting them out of bounds. They are free to play the game using any strategy they want, excluding some known-bad strategies that lead to catastrophe. Shareholders and CEOs are then free to pursue profit, without as much concern that in doing so they will take the entire U.S. economy down with them.

 

[Harry Guerrilla]

Interesting, thanks for posting this.

I think it's a good idea, at the very least to investigate.

Shareholders were responsible any number of previous times things like this happened, and they failed. Of course, because they have no interest in playing to rules that constrain profit, or a long term stable economy. They have profits, often short-term, as their goal (and we know this and accept it).

All they are doing is looking at some near-universal bad practices, and putting them out of bounds. They are free to play the game using any strategy they want, excluding some known-bad strategies that lead to catastrophe. Shareholders and CEOs are then free to pursue profit, without as much concern that in doing so they will take the entire U.S. economy down with them.

If a bank is free from government bailout or any help, why is it any business of government to dictate how much they are compensated?