World Narrows Eyes at Exec Pay

Attempt to skirt new rules could anger shareholders

(NEWSER) - In a move to skirt government restrictions on executive pay for recipients of bailout cash, some Wall Street companies are discussing raising base salaries, the Journal reports. Citigroup and Morgan Stanley are considering the idea, which is gaining currency as regulators keep a watchful eye on bonuses, say industry insiders. Higher base salaries could actually help boost bonuses, typically a percentage of salary. More»

Obama proposal leaves wiggle room, and Wall St. usually good at finding it

(AP) - The squeeze on big paydays for executives of bailed-out banks will probably leave Wall Street plenty of wiggle room. Consultants on executive pay say the caps imposed by President Obama yesterday will probably apply only to a few executives—not star traders, brokers, and salespeople who routinely earn whopping pay packages. Others note Wall Street typically finds ways to exploit loopholes. More»

Investment in banks proved better strategy than mortgage bailout

(NEWSER) - The US has long considered Europe to be the economic equivalent of a doddering old uncle, but this week it was oldster leading whippersnapper America by the hand through the most serious crisis since the Depression. Europe, seeing the need for a sturdier fix than the mortgage-bailout Band-aid Washington proposed, led the charge by investing in its own banks, a move the US followed only after much hand-wringing. But it remains to be seen whether the trend will continue, the New York Times reports. More»

(NEWSER) - Under the shadow of the deteriorating global economy, the US is considering two more steps to assuage markets, the Wall Street Journal reports: guaranteeing billions in bank debt and insuring all US bank deposits. Either move is an aggressive step, and in tandem they would mark Wasington's largest intervention yet into the financial markets. More»

A week after ripping US for crisis, dismissing need for own plan, Brown et al. retool

(NEWSER) - European leaders are eating their words a week after criticizing the US for allowing its banks to run dry and engineering a system-wide bailout for financial firms, Bloomberg reports. Governments across Europe, including Germany, the UK, Belgium and France bailed out banks across the continent and pledged support for others as Europe faces its own financial meltdown. More»