Bank Executive Bonuses, Dividends Eliminated In Derivatives Failure

A key component of the “Too Big to Fail” bank issue is that if the bank derivatives were to fail again it could literally wipe out the world economy.  Perhaps most interesting is the derivatives have been designed to pay out ahead of bank depositors in the case of a bankruptcy. New bank rules may force payment elimination of dividends However, new rules may force banks to end dividend payments and pull back bonuses for executives – something not done in the wake of the 2008 derivatives failure. These new rules are being marked as a watershed by some, but…