Bank pay crackdown

Washington launched its biggest offensive yet against runaway Wall Street pay practices Thursday, taking aim at everyone from senior executives to high-flying traders of complex securities.

“The Federal Reserve is working to ensure that compensation packages appropriately tie rewards to longer-term performance and do not create undue risk for the firm or the financial system,” Fed Chairman Ben Bernanke said in a statement.

Separately, the Obama administration’s “pay czar,” Kenneth Feinberg, is expected to unveil sweeping pay cuts for 175 top executives at the seven biggest bailed-out companies.

Citigroup, AIG, Bank of America, Chrysler, General Motors, GMAC, and Chrysler Financial.

Cuts of compensation packages for its top 25 most highly-compensated employees 50%, on average, a senior administration official told CNN.

These guys are paid obscene amounts. Good move I think.

[CNN]

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