Sunday, October 25, 2009

Local reaction to rules on banker pay

Some interesting quotes last Friday in the News & Observer from local CEOs about the proposed regulations from the Federal Reserve Board on banker pay. Jim Beck, CEO of TrustAtlantic Bank (and a member of the College of Management's Board of Advisors) makes an analogy to military or classroom justice: "Don't punish the class. Punish the guilty parties." Mike Carlton, CEO of Crescent State Bank said some oversight on pay could be warranted for banks with financial difficulties, but considered the new rules excessive for most financial institutions. My take: this is certainly a big step for the Fed to be taking; shouldn't they be spending their time on leverage ratios and reserve requirements?

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