{"id":35871,"date":"2017-07-21T05:40:04","date_gmt":"2017-07-21T05:40:04","guid":{"rendered":"https:\/\/www.biphoo.com\/bipnews\/?p=35871"},"modified":"2017-07-21T05:49:40","modified_gmt":"2017-07-21T05:49:40","slug":"u-s-attempt-limit-wall-street-bonuses-fizzles-quietly","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/lifestyle\/u-s-attempt-limit-wall-street-bonuses-fizzles-quietly.html","title":{"rendered":"U.S. attempt to limit Wall Street bonuses fizzles out quietly"},"content":{"rendered":"

U.S. attempt to limit Wall Street bonuses fizzles out quietly<\/span><\/strong><\/span><\/h2>\n

The regulatory agenda released by the Trump administration on Thursday contained a signal that the U.S. government has halted its work on restricting Wall Street executives’ bonuses and other pay incentives.<\/span><\/p>\n

The 2010 Dodd-Frank Wall Street reform law called for federal banking and securities regulators to create limits on incentive-based compensation at big financial companies and prevent executives from receiving outsized rewards for overly risky gambles.<\/span><\/p>\n

Last year those regulators, many appointed by former President Barack Obama, a Democrat, rolled out a 500-page rule over many weeks that would require senior executives to return bonuses earned by making decisions that materially hurt their banks.<\/span><\/p>\n

But in the biannual White House agenda on regulation, the rule was listed under the heading “long-term action,” instead of one denoting regulators were making progress toward a final version. In Washington-speak that meant the rule was dead.<\/span><\/p>\n

The move followed President Donald Trump’s campaign pledges to lighten federal regulations that hurt liquidity and strangled business.<\/span><\/p>\n

“They\u2019re not even working on it,” said Lisa Gilbert, who closely tracks Dodd-Frank implementation for the liberal-leaning public interest group Public Citizen.<\/span><\/p>\n

She added that the rule was labeled “pending” in previous agendas. By law it was supposed to be completed by 2011.<\/span><\/p>\n

Agencies working on the proposed rule declined to comment.<\/span><\/p>\n

Regulators neglected last year’s proposal, which addressed many concerns raised about a 2011 draft, even though Obama pushed them to finish it before he left office.<\/span><\/p>\n

“We kind of knew it was on the back-burner,” said Alexander Monterrubio, director of regulatory affairs for the National Association of Federal Credit Unions trade group. “The unified agenda confirmed that thought.”<\/span><\/p>\n

Each agency had a different view on regulating incentive-based compensation, making progress difficult, Monterrubio said.<\/span><\/p>\n

Congress wanted a way to hold top executives accountable after the 2007-09 financial crisis, when some banks experienced major losses partly due to risky decisions made by their leaders. The call for a rule was renewed when regulators rapped Wells Fargo & Co. for an incentive method that pushed employees to open thousands of phantom accounts in customers’ names.<\/span><\/p>\n

But it was politics that likely proved the rule’s downfall.<\/span><\/p>\n

Agencies give the White House lists of their regulatory priorities, which makes changes based on the president’s goals and then publishes what is called the “unified agenda.”<\/span><\/p>\n

Monterrubio said of the rule: “It wasn\u2019t going to happen under President Trump.”<\/span><\/p>\n

Source: http:\/\/www.reuters.com\/article\/us-usa-regulation-banking-idUSKBN1A602B<\/span><\/p>\n

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