Wall Street Pay Restrictions: The Financial Times On Why We Need Them

ft.com:

A bill requiring federal regulators to draw up rules for compensation structures in the financial sector was passed by the US House of Representatives on Friday and will be taken up by the US Senate. Such pay regulations, which authorities around the world are considering, will meet stiff resistance from financial institutions. Yet the case in their favour is compelling.

Read the whole story: ft.com

Comments

[mybookface]

The disconnect between the problems facing mainstreet and Washington keep widening. For the past 6 month's we're nothign but talk of regulation, but zero action. What a joke.
good articles... http://www.iamned.com

[PhilipTaylor]

HOW the WALL STREET BANKSTERS SKIMMED OUR FUTURE!

Look under the HOOD of a MORTGAGE DERIVATIVE which is a bunch of mortgages sliced up and packaged together!

MASSIVE PROJECTED and HIDDEN FEES: Banksters used Math Models to Project the Housing Hyper-Inflation of 2004 to 2006 forward TEN to Twenty Years and SKIMMED that amount using Hidden Fees added to the Cost of the Derivatives Sold as "AAA" to unsuspecting Investors around the world. Then they SKIMMED off the FEES into Executive/Employee Pockets!

So the Derivative starts its life at say 50% of its FACE VALUE! That is why many of the Derivatives are worth next to NOTHING after housing dropped only 50%. They should be worth 50% but NO! Many are NEAR ZERO!

The Banksters SKIMMED OUR FUTURE!

We NEED PEOPLE IN PR1SON! NOW! To end this ENDLESS FEASTING NIGHTMARE!

[JBS]

One reform should be to make all "bonuses" taxable the same as income from wages.

All "bonus" income should be subject to tax withholding requirements, FICA and Medicare taxes, and there should be no upper limit on the amount of income subject to FICA and Medicare withholding.

If you get a multi million "bonus", it should have income taxes, FICA and Medicare taxes taken out. The company that gives that bonus should have to pay their share of the FICA and Medicare.

[TJCole]

They should be paying us, we should liquidate Goldman Sachs and divide it by 307,000,000...excluding all Goldman employees and immediate families of course...why throw good money after bad..how's that for a new Stimulus...?

[mountainweb]

Yes, incompetent thieves who have excelled in the mis-management of their companies need strict rules to live by....

[spinns17]

rules ? the people that wrote the rules broke them.lol

[WhatDaBleep]

First - lets fix the Legal bribery that corporations can buy our politicians with "Contributions"!

Fix that - and America will fix itself!

[spinns17]

start by closeing the federal reserve.we can see by what paulson did ,what they are realy there for.but people like the morgans and rockerfellers and hunts .and all that old money that runs this world realy want.power ,just like back in the old days.same thing just different ways of doing.think we call it a bubble today tho.

[Not Blind]

It's not the obscene amounts these CEO's are being paid, but their incompetence, mis-management, and reckless practices brought down their firms, and rather than being rewarded to staying on the job, they should all have been fired.

It's the lack of accountability that is so infuriating, not how much a person makes. If they profit, and ensure the solvency of their firms, increase production, provide jobs, etc. then their rewards are well-earned. What we saw last year was the abject failure of the financial sector, followed by a forced taxpayer bail-out for managers who turned their firms and banks into casinos. When they lost, they came to taxpayers for a bail-out, and are using our money to reward themselves after running huge losses, bribing ratings firms to dupe investors, and lying to their shareholders.

These sharks should be serving hard time, not allowed to write their own paychecks at our expense.

[IncludeMeOut]

The problem is the way they are compensated. They are encouraged to take huge risks for bonuses without accountability. Heads, they win, Tails we lose. Not to mention that greed is human nature at its worst, but still-human nature. They are like children with their hands in the cookie jar.

[spinns17]

they wanted our soc sec and we didnt give it to them.so then they took it.thank you paulson.

[spinns17]

we all should be writing our reps telling them we want to see people going to jail for there wall street and bankers crimes

[viper234]

You're talking about accountability. I guess I don't have to tell you that the word "accountability" has been stricken from the English language, at least in the US. Now if you say "reconciliation" or "reflection" and talk about "looking forward" everyone will suddenly agree with you and understand you when you speak. I never thought I'd live to see the day when "accountability" became a word you had to be careful about using in adult conversation.

[spinns17]

sad but true

[DestinationsUnknown]

Senator Shelby-

You have some splaining to do

and real soon Shelby

I guess we should all ignore who was CHAIRMAN of BANK and FINANCE from 2000-2006

R-AL SHELBY

Remember him- the RUBBER STAMP CONGRESS-

CHAIRMAN of FINANCE and BANKING R-AL SHELBY- wha happened Senator?

The Montgomery, Ala-based parent of Colonial Bank, Colonial BancGroup Inc. (CNB), had a deal in the works to get a $300 million capital infusion from the smaller Ocala, Fla.-based mortgage lender Taylor, Bean & Whitaker. The deal would have made it possible for the Alabama bank to become eligible for a $550 million federal bailout.

However, the Alabama bank announced Friday that the deal was off as it released dismal quarterly financial results.

[jojony]

And you think this administration will do anything about it? I think not.

The opportunity to regulate the financial markets has passed.

Obama and his administration missed their chance.

[spinns17]

thanks to bush.he knew about it for a least a year before we did.

[ejhickey]

We also need compensation regulation the health care and education area. This wuld help to control costs in these critical areas. For example there are far too many administrators , teachers and janitors making six figure incomes in the Chicago area. the same situation probably exists in other areas. Also regulation of compensation for doctors and nurses and administrators is need to reduce heath care costs.

[spinns17]

and maybe you should take a pay cut to.

[spinns17]

the fbi should be turning wall street upside down to find wrong doings.bring this empire down.now

[research]

yes!

[RandVictims]

Why try to save this neo-classic, supply-side nightmare when it has never worked to begin with?

Obama had a chance to back to Keynes but he's still allowing tens of thousands of jobs to bleed out every month (no one appears interested in talking about that) Manufacturing jobs are the HEART of every economy that isn't solely based on energy exports in this day and age.

We don't have an economy, nothing at all, zilch, nada. Without jobs, how are we expected to grow?

[TJCole]

I for one, want to see Wall St. get everything they deserve...!

Cabish..?

[drkazmd65]

Seconded TJ,... and may that 'just reward' be served up sooner, rather than later.

[TJCole]

Ditto..brother...!