May 23, 2011
The recent financial meltdown in this country was in large part sparked by abusive practices of our giant banks. This demonstrates that unregulated " free market" practices are not in the best interests of the American people. The banks of course will kick and scream against any regulations but if it is the will of the majority of Americans, they should be forced to submit to reforms such as incentive-based compensation arrangements.
One way to change the incentives so they don’t collapse our economy again would be to delay the bonuses for three, five or more years. That way, we’ll know if the loans they made in year one remain good. In the bad days, bankers paid themselves on the volume of loans (mortgages) they generated, not on their quality.
Thank you for considering my comment,
Janette Sperber