I read this quote this morning from Fed Chair Bernanke’s testimony yesterday:
“Bernanke confirmed that Fed investigators have found that the biggest banks have made few changes in the compensation plans that many argue were part of the recent financial crisis.”
Put differently, the banks are paying their key people incentives to do it again, if they can. If we needed a good reason to support aggressive ‘too big to fail’ bank regulation, that works for me.
