
Regulators Don't Want Bankers to Be Paid for Taking Risk - dsri
http://www.bloombergview.com/articles/2016-04-21/regulators-don-t-want-bankers-to-be-paid-for-risk
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heisenbit
Bankers are taking risks with other peoples money and in such situations the
incentive structure is critical to manage behavioral risks. Another way to
reduce risk is to increase loss reserves. If reserves are to be increased
either capital needs to be added or more profits need to be retained. A large
share of bank profit goes to upper level employees and not bank shareholders
or are retained as reserves.

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backtoyoujim
If those people can create fiduciary malfeasance with no ramifications other
than a verbal repremand in a toothless media and gutless Congress ... I don't
see the risks.

What is the risk?

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mcnamaratw
Don't try to shortcut this editorial by just reading the headline!

tldr: "The reg is closing the barn door a bit, at a time when there have been
no recent mass horse escapes. That's probably a good idea though it doesn't
solve all the problems out there and is arguably kind of unhip."

