Regulators have been meeting to finalize tougher post-financial crisis rules on how Wall Street banks can trade with their own money, and it looks like one of those rules will be that Wall Street banks cannot have compensation arrangements that reward it. Period.
That goes for foreign banks operating in the U.S. too.
The WSJ is reporting the same thing. Wall Street’s got some awfully clever minds, and tons of friends of Barry’s, so there’s probably a work-around here but if not, after this year, (some) bonuses just went kerploof, and bonuses pay for Greenwich mansions.
Of course, it was the banks’ screaming for a D.C. bailout that brought this on, so ….