May 24, 2011
I’m writing because my family and I were affected by the economic collapse of 2008, and we don’t want it to happen again. Overzealous deregulation of financial markets, and the exemption of derivatives from direct oversight and regulation have destabilized our markets and harmed many millions of people in the US and throughout the world.
Wall Street greed and outrageous pay practices were a major cause of the collapse. One way to change the incentives so they don’t collapse our economy again would be to delay the bonuses for three, five or more years. That way, we’ll know if the loans they made in year one remain good. In the bad days, bankers paid themselves on the volume of loans (mortgages) they generated, not on their quality.
It is unconscionable, unfair and unethical that fortunes have been made on deals that were designed and expected to fail over time.
Thank you for considering my comment,
Eric Capstick