Fed proposes to police bank pay for 1st time

[RamboLiberal]

Source: MSNBC/AP

WASHINGTON - 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.

The Fed would not actually set compensation. Instead, the central bank would review — and could veto — pay policies that could cause too much risk-taking by executives, traders or loan officers.

Its the Fed's latest response to criticism that it failed to crack down on lax lending, irresponsible risk taking and other practices that many blame for contributing to the worst financial crisis since the 1930s.

Read more: http://www.msnbc.msn.com/id/33434209/ns/business-us_business/

[Ruby the Liberal]

1. Now, they just need to hire xGoldman employees to police it.

What could go wrong?

[AndyA]

2. Exactly. Here ya go, Uncle Joe. Glad that drinking problem is all behind you now.

Here's the key to the liquor cabinet, it's stocked full of goodies, but I know the key is in good hands.

Oh, and make sure the children don't play in the street while we're gone, OK? Have fun! :eyes:

[alc]

3. And who's going to police the fed

I'm sure this will be completely transparent like other fed activities and there's nothing to worry about. :sarcasm:

[No Elephants]

4. Chickens. Fox. HenHouse. Then again, whenever government is supposed to be regulating

business, a cosy "relationship" seems to develop sooner or later. But, Bernanke is already there.