Rep. Frank says favors Wall St bonus moratorium

WASHINGTON (Reuters) - Rep. Barney Frank, chairman of the U.S. House of Representatives Financial Services Committee, said on Tuesday that he favors a moratorium on bonuses for executives of Wall Street firms.

"There should be a moratorium on it, on bonuses, yes," the Massachusetts Democrat told reporters after chairing a hearing on possible reforms for the troubled financial system.

"They have a negative incentive effect because they are the ones that say, if you take a risk and it pays off you get a big bonus. But if it costs money, you don't lose anything," he said.

(Reporting by Kevin Drawbaugh; Editing by Tim Dobbyn)