Tell Regulators to Hold Wall Street Accountable for Its Bad Deals
Bankers Should Not Be Rewarded for Putting the American Economy at Risk
The Dodd-Frank Wall Street Reform Act includes a rule to rein in reckless bankers.
But after five years, the rule STILL hasn’t been finalized and isn’t strong enough.
Send a Message to Regulators at the Office of the Comptroller of the Currency, Federal Research Board of Governors Request for Comments, Federal Deposit Insurance Corporation, Federal Housing Finance Agency, National Credit Union Administration and the Securities and Exchange Commission
Wall Street should be attracting bankers that do the right thing for the American economy. But instead, the chance for a fat bonus on dangerous trading attracts gamblers looking for quick riches.
While this rulemaking is a step in the right direction, two provisions were notably left out that would have ensured bankers are held personally accountable for their deals:
1. Senior banker incentive pay should be deferred for four years, so that it is not paid pro-rata.
2. A portion of delayed incentive pay should be in a no-fault pool for fines on the bank, so that shareholders aren’t forced to incur the fine for their bank’s risks. This portion should consist of bail-in bonds, or Total Loss Absorbing Capacity bonds.
It’s time to stop the unchecked greed at the Big Banks that caused the Great Recession.
Your message will be submitted for public comment to each regulatory agency. It may be posted publicly on the agencies' websites.