Sunday, April 25, 2010
Fed Said to Press Largest Banks to Lower Pay Incentives for Risk
this article is about how the fed is urging banks to not reward their employees for investing in higher risk investments, because of the problems it can cause. I believe that this is the feds way of trying to prevent more problems like the fraud that Goodman Sachs has recently commited.
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I believe you are right with the prevention of fraud similar to what Goodman Sachs committed. I think this is a nice start.
ReplyDeleteBefore anything can be done, they have to fix their current internal controls and due diligence systems. Such systems have been put to work recently, especially with the news in the media of fraudulent activities. Since the establishment of Sarbannes-Oxley, much criticism has gone to whether it truly protects against fraud.
ReplyDeletecheck this article out:
http://money.cnn.com/2010/03/23/news/economy/sarbanes_oxley.fortune/