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Senator Warren Criticizes Fed Chair for Inaction on Executive Compensation

"Chair Powell, I understand why the ten biggest banks in the country like your approach. You let them do whatever they want, but you don't work for the giant banks. You work for the American people. I urge you to do your job."
Elizabeth A. Warren, US Senator
"Chair Powell, I understand why the ten biggest banks in the country like your approach. You let them do whatever they want, but you don't work for the giant banks. You work for the American people. I urge you to do your job."
Elizabeth A. Warren, US Senator

During a US Senate Committee hearing on Banking, Housing, and Urban Affairs, Senator Warren criticized Federal Reserve Chair Jerome Powell for failing to regulate executive compensation among big banks.

Senator Warren pointed to Section 956 of the Dodd-Frank Act, which requires rulemaking to limit certain compensation for employees who take excessive risks. According to Senator Warren, the Federal Reserve has not proposed such rules. Senator Warren quoted Chair Powell in 2010 when the Chair said he "expect[ed] that banks will have in place compensation plans that do not provide incentives for excessive risk taking." According to Senator Warren, none of the ten largest banks have implemented policies limiting incentive compensation for employees who take excessive risks.

Primary Sources

  1. Elizabeth Warren: Press Releases: At Hearing, Warren Slams Powell for Cozying-Up to Big Banks and Inaction on Executive Compensation Reform, Calls for Rulemaking that Protects Stability of the American Economy

Tags

Individuals
Elizabeth A. Warren
Regulated Activities
Employee Matters
Sub-Activity
Employee Compensation
Regulated Entities
Banking Entities Banking Organizations
Body of Law
Banking Law
Jurisdiction
US - Federal
Organization
US Congress