The banks lost and then gladly accepted lifestyle saving bailouts so they kept doing what they had been doing, knowing that there are never any negative consequences. Congress has too many chumps and politicians who are owned by Big Finance that find this acceptable, so the problem will keep repeating itself until someone steps in.
For Wall Street to truly reform, there have to be painful and serious consequences including clawbacks and perhaps prison terms. Somehow I'm not confident in either but would love to be surprised.
Bloomberg:
JPMorgan Chase & Co. (JPM), the biggest U.S. bank, will consider reclaiming incentive pay from employees including former Chief Investment Officer Ina Drew after her unit had a $2 billion trading loss, said two senior executives.
The lender can cancel stock awards or demand they be repaid if an employee “engages in conduct that causes material financial or reputational harm,” JPMorgan said in its annual proxy statement. The company will claw back pay if it’s appropriate, said one of the executives, who asked not to be identified because no decisions have been made.
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