Can regulators curb excessive risk taking at firms who put the economy in jeopardy by limiting their executive bonuses? One primary criticism of executives at financial institutions that received a government bailout in 2008 is that they were blinded by greed. In a free market, if individuals decide to take significant risks with their own funds, that is their business. But in a world where systematically significant banks are gambling with the world economy and public funds are involved in significant risk taking, is the responsibility different? With government bailout funds in mind, six federal agencies are seeking public comment on eliminating…
Regulators Seek To Limit Bonuses For Risk Taking At Big Banks
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.