May 26, 2011
I and others suffer today because of the economy after the bank's broke the law and caused the world unthinkable harm.
Today, yesterday and tomorrow the big banks that collapsed the world economy are still practicing the same polices they did prior to being bailed out.
Regulators should make sure the pay practices of the banks are still using the profit index as an incentive for compensation. Surely there is another way. We don't want them to a repeat one of the causes of our ruin.
Currently, most bankers receive stock options. So if they can generate more profits, the stock price goes up, and their options become more valuable.
Instead of using stock options, they should base bonuses on the bond price. Another way would be changing the rules on credit defaults swaps. These insurance instruments should be restricted to persons or enterprise that have a direct ownership quality. No more gambling that rewarded a bank or person to gain from another's failure.
Thank you for considering my comment,
grand coteau, LA