Law curbs risk- tak­ing

Townsville Bulletin - - Investor -

THE Se­cu­ri­ties and Ex­change Com­mis­sion took steps to­wards curb­ing risk-tak­ing at big Wall St firms and re­duc­ing the in­flu­ence of credit-rat­ing agen­cies, two fac­tors that con­trib­uted to the fi­nan­cial cri­sis. The com­mis­sion voted to back a rule that would make ex­ec­u­tives wait at least three years to be paid at least half of their an­nual bonuses. The rule would ap­ply to fi­nan­cial firms with $ A49.27 bil­lion or more in as­sets. The Fed­eral De­posit In­surance Corp ad­vanced the rule last month. The SEC is also propos­ing the elim­i­na­tion of a re­quire­ment that money-mar­ket funds in­vest only in se­cu­ri­ties that have credit rat­ings.

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