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Hearsay details say that only applies to the top five executives. Stock brokers - the employees - routinely get paid more than that in bonuses. The complaint is that WS employees cannot survive on their $200,000+ annual salary. That they might leave the company.
Well, the company should have thought about their problems years ago. But then where is that employee going to go if everyone else must start paying normally and cutting fees. Mutual funds that once charges 1% must now charge 0.1% (just like discount brokerages did to full service brokerages). Or the defective top management who created this problem should step aside so that the few who actually did something to earn a bonus can now run the company.
Well, none of this is going to happen. For all the show, those restrictions are easy to get around such as pay back any TARP moneys now. Better is to simply fire employees who are getting massive bonuses despite creating losses. What would be left are the few employees who are actually productive - who actually earned profits by doing simple things such as due diligence.
When it is all done, we should see many less finance executives, much lower salaries, discounted fees even in hedge funds and mutual funds, salaries in the replacement for the SEC doubled, every investment vehicle traded only on regulated markets, and a complete overhaul of accounting standards that are still as corrupt as when Enron and LTCM existed. Not. Fools will again complain about too much regulation – and buy their favorite congressmen to subvert the rules.
There is nothing on Wall Street that can be trusted without severe regulation both by government and organized open markets. It now appears the same things that created the mythical CA energy crisis are also responsible for $4 per gallon gasoline. Deregulated finance people.
These new rules do almost nothing to address the problem. Even the definition of luxery expenses has been left to the individual Board of Directors to define.
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