May 27, 2011
Elizabeth Murphy
100 F Street, NE
Washington, DC 20549
Dear Murphy,
Please look out for the interests of the American people.We paid a terrible economic price because of irresponsible risk-taking by Wall Street executives. Those executives took those risks because they knew that they could walk away with billions of dollars in bonuses and stock options and never pay for the long-term consequences of their actions. We need tough rules so that Wall Street pay packages don't encourage short-term risk taking.
I have been making an effort to speak with strangers in New Jersey, Pennsylvania, Ohio, Maryland on a recent road trip. We deliberately stopped at diners and ate at counters so that we could engage people and get into a conversation on the issues of our time. It was interesting that 99% of the individuals we had the good fortune to discuss issues such as Wall Street, financial meltdown, bailouts, bonuses, corporate lobbying, money in politices, environmental ignorance and passivity and more were like-minded in wanting elected officials and people of influence to protect American interests and adopt policies that are in the public interest. It did not matter what political party these individual related to. It struck me how out of tune elected officials and Washington are with the thinking of most Americans. Yes, the teaparty and others knee jerk and are very loud and vociferous making it seem that they are in the majority....BUT they are not. Do the right thing! Look out for us.
Your rules should require at least a five year deferral period for executive bonuses at big banks, ban executive hedging of their pay packages, and require specific details from banks on precisely how they ensure that executives will share in the long-run risks created by their decisions. It should apply to the full range of important financial institutions, and draw in all the key executives at those companies.
Once this rule is passed, only you will know the details of its enforcement. But it's important for the public to know the progress you are making on this vital issue. You should report back to the public annually with a detailed report on progress in creating accountability for Wall Street pay.
Referencing Docket No.'s:
OTS: RIN 155-AC49
OCC: RIN 1557-AD39
Fed: RIN 7100-AD69
SEC: RIN 3235-AL06
FHFA: RIN 2590-AA42
FDIC: RIN 3064-AD56
Sincerely,
Ms. rhoda schermer