by noreply@blogger.com (Mike Mish Shedlock)
Richard Fisher, governor of Dallas Fed wants to end "Too Big To Fail" and
Urges Removal of CEOs of Bailed-Out Banks
The Federal Reserve Bank of Dallas said taxpayer aid to failing banks
should come only after the voiding of all employment and bonus contracts
and the removal of chief executive officers and boards of directors.
“A set of harsh, non-negotiable consequences” for requesting U.S.
Treasury assistance might also include “clawbacks” to gain cash and
stock bonuses paid the top management team during the prior two years,
the Dallas Fed said today in a slide presentation on its website.
The proposal reflects Dallas Fed President Richard Fisher’s view that
large U.S. banks need to be split apart because they operate with an
implied government safety net that puts their risks of failure on
taxpayers.
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