OCC's Curry says wants to revisit bank pay rules in 2014
WASHINGTON (Reuters) - Comptroller of the Currency Thomas Curry said on Friday he hopes that early next year regulators will revisit proposed rules barring banks from using pay structures that encourage employees to take big risks.
U.S. regulators, including the Office of the Comptroller of the Currency (OCC) and the Federal Reserve, proposed the rules in 2011 as a way to prevent the excessive risk-taking that fueled the 2007-2009 financial crisis.
The rules, which were required by the 2010 Dodd-Frank Wall Street oversight law, have not yet been finalized.
"We're making great progress in wrapping up many of the Dodd-Frank rulemakings that we're required to do," Curry said at a Consumer Federation of America conference in Washington.
"One of the undone provisions is the provision relating to incentive compensation, and that's something that I personally would like to take up and address within the first quarter of 2014," he said.
When it was proposed in 2011, the rule called for executives at the largest financial institutions, such as Bank of America and Goldman Sachs, to have half of their bonuses deferred over at least three years.
Curry's comments came in response to a question about provisions of the Volcker rule that deal with bank employee pay. Curry said incentive-based compensation should be addressed soon but that he could not comment on the Volcker rule, which is scheduled for a vote by regulators next week.
It is not clear whether the compensation rule could be finished quickly. Regulators have been working to write a host of new rules for U.S. financial institutions.
The Fed and other agencies still must set debt requirements for big banks and finish aspects of capital rules. The OCC also plans to examine its supervision of the biggest U.S. banks after a report released on Thursday recommended changes to improve oversight.
(Reporting by Emily Stephenson; Editing by Steve Orlofsky)
- Exclusive: Malaysia plane probe narrows on mid-air disintegration - source
- Radar showed missing plane may have turned back: Malaysia military
- Missing Malaysian jet may have disintegrated in mid-air: source |
- Malaysian plane presumed crashed; questions over false IDs |
- Merkel raps Putin as Russian forces tighten grip on Crimea |