Regulators Seek To Limit Bonuses For Risk Taking At Big Banks

Can regulators curb excessive risk taking at firms who put the economy in jeopardy by limiting their executive bonuses?

One primary criticism of executives at financial institutions that received a government bailout in 2008 is that they were blinded by greed. In a free market, if individuals decide to take significant risks with their own funds, that is their business. But in a world where systematically significant banks are gambling with the world economy and public funds are involved in significant risk taking, is the responsibility different? With government bailout funds in mind, six federal agencies are seeking public comment on eliminating incentive bonuses for too big to fail executives.

Dodd-Frank law is the...

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