Fed Sets New Bank Pay Rules

As most people are already aware, the financial crisis has been largely blamed on excessive risks taken on the part of financial systems that aimed to bring in huge paydays for bank employees. Now, though, the Federal Reserve plans to implement several rules that will change how banks pay their employees in order to avoid dangerous risk-taking.
 
The government has faced enormous pressure from both the outraged public and from other countries, such as France and Germany, to curb these harmful practices. In response to these desires, the Fed has finally rolled out a series of guidelines that will come into play over the next few weeks. These guidelines will eventually apply to any employee that might engage in risky behavior, not just bank executives.
 
According to the Federal Reserve, every Fed-regulated financial institution in the country will be subject to these regulations and that it already has the power to undertake these new endeavors.  This means that 5,000 bank holding companies and 800 smaller state-chartered banks will be subject to these new rules.

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