LONDON — Some of the world’s most powerful central bankers and financial regulators are proposing that the Securities and Exchange Commission and its counterparts in other countries extend their powers to include the regulation of executive compensation. Adair Turner, Britain’s top financial regulator, laid out the proposed new powers that he and some of his international colleagues hope to wield... [more]
LONDON — Some of the world’s most powerful central bankers and financial regulators are proposing that the Securities and Exchange Commission and its counterparts in other countries extend their powers to include the regulation of executive compensation.
Adair Turner, Britain’s top financial regulator, laid out the proposed new powers that he and some of his international colleagues hope to wield to ensure that bankers’ bonuses do not rely solely on the pursuit of profit.
Not only will regulators insert themselves into the secretive realm of bank compensation practices, Mr. Turner said, they will also demand that banks set aside more capital if their pay packages are too high.
“This has never been done before,” said Mr. Turner, who heads the Financial Services Authority in Britain. “But the days of light-touch regulation are over.”
http://www.nytimes.com/2009/03/20/business/worldbusiness/20supervise.html?ref=business
What he didn't mention, of course, is that this includes all bankers worldwide EXCEPT the ones who live in Manhattan, and that the popular backlash against excessive pay for bad risk-taking will have ZERO effect on Manhattan real estate.
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