To: Mr. Bank CEO
Message: Your compensation package has been rejected by the Financial Stability Board.
Yes, in the next few months, regulators of the financial industry in individual countries could have this international review board looking over their shoulders. This board would be measuring progress in ensuring that banks have higher levels of capital and that executives don’t take home huge incomes as a result of risky behavior.
Reform of the financial and banking sector, says Treasury Secretary Timothy Geithner, is the Obama administration’s second biggest priority at the Group of 20 summit in Pittsburgh. (The first priority at this gathering...