Fed Summons CEOs of 28 Top U.S. Banks to Meet With Supervisors Nov. 2
Oct. 30 (Bloomberg) -- The chief executive officers of 28 of the largest U.S. banks have been summoned to meet with supervisors at Federal Reserve banks on Nov. 2 to discuss how the central bank will scrutinize pay practices, according to a person familiar with the matter.
The Fed earlier this month proposed new guidelines on pay at the nation’s banks and said it will review the largest firms to ensure compensation doesn’t create incentives for the kinds of risky investments blamed for the financial crisis.
Chief executives will be briefed on so-called horizontal reviews, which help regulators identify banks where practices differ significantly from the norm, said the person, who declined to be named because the meetings haven’t been made public. The Fed hasn’t identified the banks.
By summoning CEOs, the Fed is sending a message that it wants them to take the process seriously, said Kevin Petrasic, an attorney at Washington law firm Paul Hastings and a former special counsel at the Office of Thrift Supervision.
“It starts with the CEO,” Petrasic said. “It is not subtle at all to tell the most highly compensated people in the organization, ‘Okay we are starting with you.’”
Among the topics to be covered in the meetings are how banks will share information with supervisors, the person said.
http://www.bloomberg.com/apps/news?pid=20601068&sid=aXUtFGgmOqvk
ANOTHER MEETING - LINK
6-7 Nov 2009 G20 Finance Ministers and Central Bank Governors Meet
