May 29, 2011
My family and the entire nation suffered greatly because of Wall Street greed and reckless gambling with complex financial deals. The collapse of 2008 has resulted in school closings, loss of multitudes of jobs, loss of homes for those who could no longer afford them, and also contributed to our huge national debt. Yet, no one on Wall Street is in jail. I don’t want that to happen again.
I urge you to do all you can to reform Wall Street and create incentives to end their abusive practices. Please consider all of the following:
1. Use the bank’s bond price as a basis for incentive compensation. As you know, the bond price is a measure of the ability of the bank to repay its debt.
2. Base bonus pay on quality of the loans, not the volume of loans. This could be achieved by delaying bonuses for 5 years or more to see if the loans made in the first year remain good for years to come.
3. Bonus payments based on investments that turn out, in later years, to have been based on shoddy dealing, should be forfeited, as a way to compensate shareholders.
I appreciate the opportunity to comment and urge you to do all possible to reform Wall Street and prevent another economic collapse.
Mariette Nowak
East Troy, WI