May 27, 2011
Elizabeth Murphy
100 F Street, NE
Washington, DC 20549
Dear Murphy,
America paid a terrible economic price because of irresponsible risk-taking by Wall Street executives. Those executives took those risks because they knew that they could walk away with billions of dollars in bonuses and stock options and never pay for the long-term consequences of their actions. We need tough rules so that Wall Street pay packages don't encourage short-term risk taking.
My husband and I have paid a terrible price for the risk taking Wall Street executives took. While they increased their personal worth by billions, we used every penny of our 401K to survive. We destroyed our credit because financial institutions would not assist in refinancing an income property as values and rent deteriorated. My husband lost his full time job to a pre-deim job that doesn't pay the bills. We are scrapping by while "theives & liars" continue to live the good life. Isn't it time to hold Wall Street executives responsible for the products they promote and stand to gain from? Shouldn't they be responsible of the success or FAILURES of their actions? And if their "new" products are so good for the economy then a waiting period for bonuses and compensations for risking taking isn't asking to much.
Your rules should require at least a five year deferral period for executive bonuses at big banks, ban executive hedging of their pay packages, and require specific details from banks on precisely how they ensure that executives will share in the long-run risks created by their decisions. It should apply to the full range of important financial institutions, and draw in all the key executives at those companies.
Once this rule is passed, only you will know the details of its enforcement. But it's important for the public to know the progress you are making on this vital issue. You should report back to the public annually with a detailed report on progress in creating accountability for Wall Street pay.
Sharon Whipkey
Referencing Docket No.'s:
OTS: RIN 155-AC49
OCC: RIN 1557-AD39
Fed: RIN 7100-AD69
SEC: RIN 3235-AL06
FHFA: RIN 2590-AA42
FDIC: RIN 3064-AD56
Sincerely,
Sharon Whipkey