SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
Bank executives are "the poster boys for misbegotten pay."
(Image: Shuttershock)
'White Collar Crime Pays': Decade After Dodd-Frank, Executives Still Lining Their Pockets
"It's 2008 all over again. Congress is bailing out Big Business and enriching CEOs while workers scrape by as the economy lurches downward in a pandemic."
Jul 21, 2020
Big business and banks are just as corrupt and eager to shovel profits to senior executives 10 years after the landmark banking reform legislation known as Dodd-Frank as they were during the 2008 crisis, a new report warns, because the bill's regulations on executive pay remain unimplemented.
"White collar crime pays, and until Congress enacts the rules to change it, we'll continue to see top executives raking in off catastrophes of their own making," report author Bartlett Naylor, financial policy advocate at Public Citizen, said in a statement.
\u201c"Income and wealth inequality are bad for the economy, even for the rich. Under diminishing marginal utility theories, simply put, if income clots with the few at top, they simply can\u2019t spend all that money\u2014circulate it\u2014in the economy." https://t.co/wELtGV0YLU via @Public_Citizen\u201d— Nomi Prins (@Nomi Prins) 1595350262
The report lists billions in bonus cash paid out to executives over the past decade despite Dodd-Frank's regulatory framework banning such cash-outs.
"It's 2008 all over again," said Naylor. "Congress is bailing out Big Business and enriching CEOs while workers scrape by as the economy lurches downward in a pandemic."
\u201cNext time, Congress, enact the law directly; don't ask regulators to implement. They've gone 9 years passed deadline on pay reform in #DoddFrank10 \n\n https://t.co/IGUM2OgL52\u201d— Bartlett Naylor (@Bartlett Naylor) 1595347967
According to Public Citizen:
One of the key rules mandated under Dodd-Frank addresses unbridled senior banker pay, but it has remained unimplemented--nine years after the deadline Congress set--thanks to lobbying from the banking industry, the report found. Section 956 calls for a ban on all "inappropriate" pay structures that could lead to "excessive risk taking." Meanwhile, money that Congress allocated to bail out bank creditors in 2008 effectively went to bankers, while more than 10 million lost their homes, their jobs and their savings.
The group's executive vice president, Lisa Gilbert, called bank executives "the poster boys for misbegotten pay."
"If we don't implement guardrails on executive compensation and stop incentivizing corporate bad behavior, we haven't learned anything since 2008," said Gilbert.
An Unconstitutional Rampage
Trump and Musk are on an unconstitutional rampage, aiming for virtually every corner of the federal government. These two right-wing billionaires are targeting nurses, scientists, teachers, daycare providers, judges, veterans, air traffic controllers, and nuclear safety inspectors. No one is safe. The food stamps program, Social Security, Medicare, and Medicaid are next. It’s an unprecedented disaster and a five-alarm fire, but there will be a reckoning. The people did not vote for this. The American people do not want this dystopian hellscape that hides behind claims of “efficiency.” Still, in reality, it is all a giveaway to corporate interests and the libertarian dreams of far-right oligarchs like Musk. Common Dreams is playing a vital role by reporting day and night on this orgy of corruption and greed, as well as what everyday people can do to organize and fight back. As a people-powered nonprofit news outlet, we cover issues the corporate media never will, but we can only continue with our readers’ support. |
Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
Big business and banks are just as corrupt and eager to shovel profits to senior executives 10 years after the landmark banking reform legislation known as Dodd-Frank as they were during the 2008 crisis, a new report warns, because the bill's regulations on executive pay remain unimplemented.
"White collar crime pays, and until Congress enacts the rules to change it, we'll continue to see top executives raking in off catastrophes of their own making," report author Bartlett Naylor, financial policy advocate at Public Citizen, said in a statement.
\u201c"Income and wealth inequality are bad for the economy, even for the rich. Under diminishing marginal utility theories, simply put, if income clots with the few at top, they simply can\u2019t spend all that money\u2014circulate it\u2014in the economy." https://t.co/wELtGV0YLU via @Public_Citizen\u201d— Nomi Prins (@Nomi Prins) 1595350262
The report lists billions in bonus cash paid out to executives over the past decade despite Dodd-Frank's regulatory framework banning such cash-outs.
"It's 2008 all over again," said Naylor. "Congress is bailing out Big Business and enriching CEOs while workers scrape by as the economy lurches downward in a pandemic."
\u201cNext time, Congress, enact the law directly; don't ask regulators to implement. They've gone 9 years passed deadline on pay reform in #DoddFrank10 \n\n https://t.co/IGUM2OgL52\u201d— Bartlett Naylor (@Bartlett Naylor) 1595347967
According to Public Citizen:
One of the key rules mandated under Dodd-Frank addresses unbridled senior banker pay, but it has remained unimplemented--nine years after the deadline Congress set--thanks to lobbying from the banking industry, the report found. Section 956 calls for a ban on all "inappropriate" pay structures that could lead to "excessive risk taking." Meanwhile, money that Congress allocated to bail out bank creditors in 2008 effectively went to bankers, while more than 10 million lost their homes, their jobs and their savings.
The group's executive vice president, Lisa Gilbert, called bank executives "the poster boys for misbegotten pay."
"If we don't implement guardrails on executive compensation and stop incentivizing corporate bad behavior, we haven't learned anything since 2008," said Gilbert.
Big business and banks are just as corrupt and eager to shovel profits to senior executives 10 years after the landmark banking reform legislation known as Dodd-Frank as they were during the 2008 crisis, a new report warns, because the bill's regulations on executive pay remain unimplemented.
"White collar crime pays, and until Congress enacts the rules to change it, we'll continue to see top executives raking in off catastrophes of their own making," report author Bartlett Naylor, financial policy advocate at Public Citizen, said in a statement.
\u201c"Income and wealth inequality are bad for the economy, even for the rich. Under diminishing marginal utility theories, simply put, if income clots with the few at top, they simply can\u2019t spend all that money\u2014circulate it\u2014in the economy." https://t.co/wELtGV0YLU via @Public_Citizen\u201d— Nomi Prins (@Nomi Prins) 1595350262
The report lists billions in bonus cash paid out to executives over the past decade despite Dodd-Frank's regulatory framework banning such cash-outs.
"It's 2008 all over again," said Naylor. "Congress is bailing out Big Business and enriching CEOs while workers scrape by as the economy lurches downward in a pandemic."
\u201cNext time, Congress, enact the law directly; don't ask regulators to implement. They've gone 9 years passed deadline on pay reform in #DoddFrank10 \n\n https://t.co/IGUM2OgL52\u201d— Bartlett Naylor (@Bartlett Naylor) 1595347967
According to Public Citizen:
One of the key rules mandated under Dodd-Frank addresses unbridled senior banker pay, but it has remained unimplemented--nine years after the deadline Congress set--thanks to lobbying from the banking industry, the report found. Section 956 calls for a ban on all "inappropriate" pay structures that could lead to "excessive risk taking." Meanwhile, money that Congress allocated to bail out bank creditors in 2008 effectively went to bankers, while more than 10 million lost their homes, their jobs and their savings.
The group's executive vice president, Lisa Gilbert, called bank executives "the poster boys for misbegotten pay."
"If we don't implement guardrails on executive compensation and stop incentivizing corporate bad behavior, we haven't learned anything since 2008," said Gilbert.
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.