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| Liber8® Economic Information Newsletter |
Executive Compensation and Market Risks — February 2010
Some U.S. taxpayers were angry and felt betrayed when financial company executives received large bonuses in the midst of the 2008-09 financial crisis. These executives headed some of the same firms whose risky practices contributed to the crisis—and then later received billions of dollars in government bailouts. Who makes the changes in executive compensation policies and regulations to avoid such risks in the future? Read "Executive Compensation and Market Risk" in the February 2010 Liber8 Economic Information newsletter for answers and interesting insights.
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| Featured Data Source |
Banking Compensation
This chart, from a Reuters' analysis of pay at the 18 biggest banks by market value, illustrates the massive differences in pay among the CEOs of the world's top banks. The compensation of the CEOs of the largest U.S. banks towers above what's paid to banking chiefs in other parts of the world.
Source: Reuters Research
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| Resources |
| International Economy |
Reform in the Financial Services Industry: Strengthening Practices for a More Stable System The Report of the IIF Steering Committee on Implementation (SCI)
See SECTION IV. COMPENSATION PRACTICES IN FINANCIAL INSTITUTIONS (page 65)of this report for compensation recommendations for financial services companies by governments throughout the world.
Source: Institute for International Finance
 More International Resources
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| National Economy |
Scott G. Alvarez, General Counsel: Executive compensation Before the Committee on Financial Services, U.S. House of Representatives, Washington, D.C.
Federal Reserve General Counsel offers some perspectives on the subject of incentive compensation in the banking and financial services industry. As the events of the past 18 months demonstrate, compensation practices throughout a firm can incent even non-executive employees, either individually or as a group, to undertake imprudent risks that can significantly and adversely affect the risk profile of the firm.
Source: Committee on Financial Services, U.S. House of Representatives
More National Resources
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| Regional Economy |
Regional Resources from the U.S. Bureau of Labor Statistics
This section of the BLS site offers employment, productivity, inflation and other data and information by broad region, metropolitan statistical area and state.
Source: U.S. Bureau of Labor Statistics
More Regional Resources
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| Recent Research Articles |
| International Research |
"Bank Relationships and the Depth of the Current Economic Crisis"
By Christopher Candelaria, Julian Caballero, and Craig S. Hakkio
Federal Reserve Bank of San Francisco FRBSF Economic Letter, Number 2009-38, December 14, 2009.
The financial crisis has been worldwide in scope, but the severity has differed from country to country. Those countries whose banks played a more central role in the global financial system, tended to be less seriously affected.
More International Research Articles
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| National Research |
"Incentive Compensation, Risk Management, and Safety and Soundness:a speech at the University of Maryland's Robert H. Smith School of Business Roundtable: Executive Compensation: Practices and Reforms, Washington, D.C."
By Daniel K. Tarullo
Federal Reserve System Board of Governors, November 2, 2009.
Tarullo discusses the supervisory approach the Federal Reserve has taken in the compensation guidance issued in October 2009, and explains the specific supervisory processes it intends to follow in putting this guidance into practice.
More National Research Articles
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| Regional Research |
"The Financial Sector Seeks Stability in 2010"
(PDF)
By Mike Hammill and Pam Frisbee
Federal Reserve Bank of Atlanta EconSouth, Issue Fourth Quarter 2009, January 4, 2010.
Breaking the grip of the financial crisis required intense intervention by the U.S. government and regulatory agencies. Policymakers now seek to maintain the progress they have made and return normalcy to credit markets.
More Regional Research Articles
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