Limits

Fed Considers Bank Pay Limits - NYTimes.com:

"The Federal Reserve is preparing what would be the most sweeping rules yet to regulate the pay at banks across the country, people close to the discussions said on Friday.

The rules would apply not just to the compensation and bonuses of top executives but also to traders, loan officers and other employees. But rather than focusing on the specific amount employees are paid, Fed officials will be scrutinizing whether the structure of compensation, like the use of bonuses based on the volume of loan origination, encourages excessive risk-taking."

This is so stupid. The easiest way to keep anyone from excessive risk taking is to raise interest rates. The source of all the excessive risk taking was the low interest rates created by the Federal Reserve itself.

But you won't hear the Federal Reserve take any responsibility for the meltdown even though they are the source of the original bubbles that cause so much pain and suffering.

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