Wall Street reform gives regulators power over executive pay

[ProSense]

Source: The Washington Post

For the all the changes to the regulatory fabric contained in the landmark Dodd-Frank law, none might be more significant to the financial sector's health than Section 956(a).

That largely overlooked provision of the law gives federal agencies expanded powers to write regulations dictating pay at financial firms. How they choose to use these powers could have a major impact on whether banks pursue excessive risks.

"The financial crisis made patently clear that the direct regulation of the choices that banks make is bound to be imperfect because regulators are often following behind," said Lucian A. Bebchuk, a Harvard Law School professor who has advised the Obama administration on executive compensation issues. "It's valuable for regulators to have an extra tool to influence the private incentives that will shape executives' decision-making."

Banking regulators now face a set of choices as they seek to implement the financial pay provisions of the law, which requires action within nine months.



Read more: http://www.washingtonpost.com/wp-dyn/content/article/2010/08/18/AR2010081806703.html

[wtmusic]

1. Approaching the problem from the wrong angle.

Antitrust. Antitrust. Did I mention antitrust?

If we just enforced the goddam Sherman Act the "big corporations" would have to lower executive pay to stay competitive.

[ProSense]

3. Executive pay needed to be addressed. Besides, there is also

the Kanjorski Amendment

[wtmusic]

7. Thx, did not know about this. nt

[Wilms]

2. Great. And who has power over the "regulators".

Probably more BS.

Oh, and Dodd was involved. :eyes:

[defendandprotect]

4. Exactly ... lessons of these captialist crimes is that regulators are bribed ....

for cripes sakes, we've had our entire government bribed and bought out!!

[DFLforever]

5. Let's can regulations?

Is that a solution? Are the Repukes right, regulations never work? They just cripple enterprise and industry?

[defendandprotect]

6. Only YOU are saying that -- !!! Rather, let's re-regulate capitalism ....or junk it --

back to NEW DEAL -- reinstall all the rules and regulations -- including Glass-Steagall --

Unregulated capitalism is merely organized crime --

but let's also realize that as long as we have capitalism/corporatism as

the basis of our economy is capitalism that we are open to the "buying of government" --

our government agencies and Congress -- our Elected Officials.

Pre-BRIBERY of candidates and pre-OWNERSHIP of candidates/elected officials is how we've

gotten where we are now!

Capitalism is fascism -- Corporatism is fascism --

Capitalism is a system intended to move the wealth and natural resources of a nation

from the many to the few -- and it has done that quite successfully!!