Fed looks to curb risk with wage rules

federal reserve

The Federal Reserve on Thursday announced a series of measures aimed at curbing pay practices that exacerbate risk.

"Compensation practices at some banking organisations have led to misaligned incentives and excessive risk-taking, contributing to bank losses and financial instability," Ben Bernanke, the chairman of the Fed, said. "We are working to ensure that compensation packages appropriately tie rewards to longer-term performance and do not create undue risk for the firm or the financial sys

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