May 25, 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.
Hire more regulators! Police the white collar crime. Go after fraud.
One way to change the incentives so Wall Street doesn't collapse our economy again would be for regulators to set up a way for shareholders to grab back ill-gotten gains. Executive pay and bonuses should be paid on revenue relative to risk. Risk level is being ignored because there is no consequence. Especially if that executive is retiring or changing companies in the short term. Long term perspective is non-existent. Also set positions of ownership of open shares of stock would help keep speculators from fixing the market.
If it turns out that the profits in a given year were built on shoddy practices that become clear in the out-years, those bonus payments should be forfeited.
Thank you for considering my comment,
Alan Scott