Banking crisis U-turn of the year?
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It’s a commonly-held belief that the bailout of Spain’s banks won’t be sufficient to solve the country’s problems. It will increase the government’s borrowing, and may not be large enough anyway.
The real solution is
fiscal banking political some kind of union. See if you can spot one of the barriers to moving forward with that: Read more
Regulator powers to claw back up to two years of executive pay in the event of a bank failure go too far, banks have warned on the eve of the FDIC creating a formal rule on the matter, according to Reuters. Bank associations said the powers, introduced under the Dodd-Frank act, did not allow for circumstances when a bank’s failure was beyond its control and wrongly tied clawbacks to job titles over actual decisions. Regulators are sympathetic to the second objection but are unlikely to concede the powers in a climate of public anger over executive compensation. ‘Say on pay’ shareholder votes on compensation are meanwhile now being used with gusto across corporate America, says the FT.