NEW YORK (Reuters) - U.S. regulators are hoping to finalize rules for banker bonuses in the “near term,” said Molly Scherf, deputy controller for large banks at the Office of the Comptroller of the Currency.
The rules are expected, among other things, to dictate when banks can take prior years’ bonuses back from bankers, for example if the employee engaged in fraud.
Under the 2010 Dodd-Frank financial reform law, regulators such as the OCC must craft rules to ensure that banks’ pay packages do not encourage reckless risk taking.
According to Davis Polk, as of Sept. 30, rulemakers had finalized 64 percent of required regulations under Dodd-Frank, and had proposed language for another 15 percent more. For about another 21 percent, rules had not been proposed.
Reporting by Olivia Oran in New Yor; Writing by Dan Wilchins; Editing by G Crosse and Sandra Maler