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MONDAY, NOVEMBER 23, 2009
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FDIC Chief Seeks Limits on 'Eye-Popping' Banker Pay

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(Newser) – The big banks should rein in the "eye-popping" salaries they pay top execs and shift to a more principles-based rewards system, FDIC chief Sheila Bair tells Bloomberg. Bair, along with House Democrats and New York's attorney general, says if the banks don't change their ways, regulators should set standards to make sure top bankers are paid for long-term results instead of quick gains.

"I do wish some of these firms would exercise better restraint and common sense on what they’re paying their folks,” Bair says. Bonus packages that encouraged risk-taking are widely blamed for the financial crisis. The House—which expressed outrage at AIG's paying of millions in bonuses while receiving billions in federal funds—approved legislation last week that will give regulators the ability to restrict financial sector pay packages that encourage risk-taking, and will let shareholders vote on executive compensation. 

FDIC chair Sheila Bair speaks at the Rainbow PUSH Wall Street Project Economic Summit in New York, earlier this year.
FDIC chair Sheila Bair speaks at the Rainbow PUSH Wall Street Project Economic Summit in New York, earlier this year.   (AP Photo/Seth Wenig)
AIG's paying out of $165 million in retention bonuses while getting a rescue package valued at over $182 billion put executive compensation in the spotlight earlier this year.
AIG's paying out of $165 million in retention bonuses while getting a rescue package valued at over $182 billion put executive compensation in the spotlight earlier this year.   (AP Photo/Mark Lennihan, file)
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I’m not sure I buy this, that all these eye-popping salaries are necessary to keep folks for competitive reasons,. We do need to revamp the system to make sure that the incentives are long-term.
- FDIC Chairman Sheila Bair

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13 comments
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cochiserocks
Aug 6, 09 6:08 AM CDT
Kudos to the US for actually trying to deal with this. Most UK politicians don't want to mess up their current funding, or their future gravy train. Reply
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+2
ClearSight
Aug 6, 09 6:20 AM CDT
Wait a minute... If they restrict pay, doesn't that fly in the face of soaking the rich to pay for kill granny health care corruption...er.... reform plan pushed by the authoritarian Obama regime? Oh and please report me like good little brown shirts for mentioning health care to the Obama gestapo. Reply
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-7
IN RESPONSE:
Nwambe
Aug 6, 09 7:23 AM CDT
As you wish.
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+3
IN RESPONSE:
odowd80
Aug 6, 09 8:20 AM CDT
I can't help but wonder sometimes if guys like ClearSight are for real. "Kill granny?" Wtf are you talking about? If right wingers are really as angry as some sound in these forums, its no wonder they snap and go into public gyms with guns blazing.
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+2
IN RESPONSE:
ClearSight
Aug 6, 09 9:19 AM CDT
odowd80 that nut that shot those women has NOT been identified with ANY political group, so keep groping in the dark.. As for the Kill Granny reference, under Obama's plan my 70 year mothers health options will be restricted so that in effect in does limit her life.
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