Fed Again Seeking Pay Caps

The good ole' days on Wall Street might soon be coming to a close: The Federal Reserve is preparing to restrict compensation practices at the biggest banks in America, with a mission of squelching pay practices that emphasize short-term performance over the long-term health of the financial institution. The Fed is not looking to cap the amount of pay an employee can receive. Instead, banks would have to explain pay practices that appear to reward only short-term gains to their regulator and adjust them if it's determined they create excessive risk.