facebook
twitter
rss
account
search
search
 

FDIC explores risk-related fee policy

Jan. 12, 2010 at 4:28 PM   |   Comments

| License Photo
WASHINGTON, Jan. 12 (UPI) -- The U.S. Federal Deposit Insurance Corp. said it would seek public input on a plan to have bank fees reflect risk-taking built into bank pay policies.

The plan, if it becomes policy, is one of a series of responses by the federal government to placate voters angry that U.S. banks had a hand in triggering a two-year recession, yet came away largely unscathed.

FDIC Chairman Sheila Bair said there was "a broad consensus of academic studies," that concluded "poorly designed compensation structures can misalign incentives and induce risk taking."

Bair said called a study of "compensation structure, rather than levels of compensation," a fair approach.

Some large banks have changed pay policies recently, attempting to get ahead of the furor building over massive compensation plans while the U.S. unemployment rate sits at 10 percent.

Goldman Sachs recently said its top 30 executives would be given bonuses exclusively in restricted stock that is not redeemable for five years.

Topics: Sheila Bair
© 2010 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Tesla could face sales ban in Michigan Tesla could face sales ban in Michigan
2
Early completion of refit of Italian aircraft carrier Early completion of refit of Italian aircraft carrier
3
Russia doesn't fear Azeri gas, scholar says Russia doesn't fear Azeri gas, scholar says
4
Europe must drop the euro, Germany abandon mercantilism Europe must drop the euro, Germany abandon mercantilism
5
British Reaper UAVs join the fight against Islamic State British Reaper UAVs join the fight against Islamic State
Trending News
Around the Web
x
Feedback