Dodd-Frank includes Wall Street pay restrictions that could've held executives like SVB's Greg Becker accountable for their dangerous short-sightedness. But regulators consistently fail to implement this part of the law.
, that’s exactly how it turned out at SVB. The board loaded up Becker’s compensation packages with stock-based pay and he pursued risky strategies, overly relying on a single, volatile industry — technology — and then locking up cash from largely uninsured deposits in long-term bonds, without preparing for interest rate hikes.
His largest payday came in 2021 when SVB stock was trading as high as $700 per share. That year Becker cashed in $19 million in options and $6.7 million in stock grants he’d received in the mid-2010s when the stock was only worth about $100 per share. But financial regulators don’t have to wait for Capitol Hill to enforce pay restrictions that have been in the law since 2010. The Biden administration should seize this moment to change the incentives for banking executives. For too long, Wall Street recklessness has generated huge windfalls for the rich and huge costs for the rest of us.Sarah Anderson directs the Global Economy Project of the Institute for Policy Studies, and is a co-editor of Inequality.org.
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Wall Street strengthens after big bank deal, regulator movesNEW YORK (AP) — Most of Wall Street is rising Monday after regulators pushed together two huge banks over the weekend and made other moves to build confidence in the struggling industry. The S&P 500 was 0.5% higher in morning trading.
Weiterlesen »
Dow jumps 350 points after bank deals calm Wall Street jittersTraders have raised bets of the Fed likely hitting a pause on rate hikes on Wednesday to ensure financial stability.
Weiterlesen »
Global banking turbulence prompts Wall Street banks to trim hawkish Fed betsGoldman Sachs is expecting a pause this week from the U.S. Federal Reserve after a year-long rate increase campaign as Wall Street banks scale back their hawkish expectations in the aftermath of the ongoing global banking turmoil.
Weiterlesen »
Asia-Pacific markets to rise after Wall Street sees gains on optimism led by regional banksAsian markets trade higher as banks rally on the hopes that troubles in the U.S. and Europe are averted.
Weiterlesen »
How middle managers on Wall Street go wrongInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Weiterlesen »
First Republic Bank woes mount despite Wall Street rescueShares of First Republic Bank continued their free-fall despite a rare move by the biggest U.S. banks to pump $30 billion into the regional lender.
Weiterlesen »