This week, Bloomberg reported that U.S. regulators have finally released rules that would discourage “risk-taking by senior executives and key employees at major financial services firms.”
Bloomberg adds the proposed rules have been proposed based on 2010 Dodd-Frank law, and that they “would require companies to withhold significant portions of pay, making it easier to take back awards [such as bonuses]—even those already vested—if an employee takes inappropriate risks or draws an enforcement action.”
Read: Have systematic risks to markets been tamed?
But, based on how the proposed rules define assets—such as how much in assets under management firms must have to be affected—it seems some financial industry firms and execs would “dodge the toughest provisions,” reports Bloomberg in a follow-up article.
Also read:
U.S. Fed official to deliver plan to splinter big banks
Not all companies know how to manage risk