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Entries in Financial Meltdown (1)

Monday
Feb072011

FDIC to Vote on Holding Back Wall Street Bonuses

Photo Courtesy - Getty Images(WASHINGTON) -- In an effort to reign in excessive risk-taking and big bonuses that regulators say contributed to the 2008 financial meltdown, the Federal Deposit Insurance Corp. could pass a measure Monday that would tie executive pay incentives at top financial firms to long-term performance, reports the Wall Street Journal.

Under the measure, companies such as Bank Of America, Goldman Sachs and JPMorgan Chase would be required to hold back portions of such bonuses for at least three years.

Despite concerns that the exessive bunuses contributed to the meltdown, benefits and compensation on Wall Street has hit an all-tome high. Last year, publicly traded Wall Street banks and securities firms paid out a record $135 billion compared to $128 billion in 2009.

Some banks believe that the measure, which came as a result of a provision in the Dodd-Frank financial overhaul law, will cause some of their best employees to leave for financial institutions overseas.
 
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ABC News Radio