DODD-FRANK/SEC: “Several regulators have dropped pursuit of a long-running plan to restrict bonuses on Wall Street, as part of a wider effort to stop working on unfinished rules put in place after the financial crisis.
Government agencies, including the Securities and Exchange Commission and several banking regulators, were directed under the 2010 Dodd-Frank law to develop compensation rules intended to curb excessive risk taking. Former President Barack Obama, during his last year in office, personally urged regulators to finish the rules before his term ended.
The six agencies delivered a new proposal in April 2016, but that was too late to push through a final version of the rule before President Donald Trump took office in January.
New regulatory agendas unveiled Thursday [7-20-17] by the SEC and others show leaders excluded any mention of the restrictions, including longer deferment periods for bonuses and the amount of time payouts are subject to potential clawbacks. The proposal had targeted executives at some of the nation’s largest financial firms, including investment managers and mortgage-finance companies Fannie Mae and Freddie Mac, but the stiffest rules were reserved for big banks.”
-Dave Michaels, “Regulators Drop Pursuit of Banker, CEO Pay Restrictions,” The Wall Street Journal online, July 20, 2017 11:43pm