Elizabeth Warren & Co. Propose Paying Bank Bonuses Sometime Between ‘Much Later’ And ‘Never’

Sound good?
By U.S. Treasury Department

via Wikimedia Commons

Less than two weeks before Election Day, Senate Democrats offer a taste of what the Budget Committee Chairman Bernie Sanders/Banking Committee Chairman Sherrod Brown world will look like. In short: Moderate your holiday spending.

In the letter, the lawmakers asked for bonus pay to be deferred longer than four years and for clawbacks and pay reductions to be mandatory rather than optional.

The senators said four years is too short for clawbacks, considering that it might take much longer for the full scope of wrongdoing to become apparent. They also asked for failures in risk management and culpable negligence in employee oversight to be added to the conditions that could trigger clawbacks.

Democratic Senators Call for Stricter Rules on Wall Street Pay [WSJ]
Earlier: Proposed Bonus Rules Would Mean Only Spending 60% Of Your Pay On Hookers And Blow At Once