21 Sep 2009

Fed to monitor bank pay policies?

5:52 pm on 21 September 2009

The United States Federal Reserve is reported to be considering moves to regulate the pay policies of nearly 6000 financial institutions.

The rules are intended to curb the culture of high bonuses which many blame for creating the high-risk practices that triggered the global economic crisis.

Under the proposed regime, the Federal Reserve would have to scrutinise and approve the pay policies at each institution.