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US close to finalising rules on banker bonus pay: OCC
[NEW YORK] US regulators are hoping to finalise 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 per cent of required regulations under Dodd-Frank, and had proposed language for another 15 per cent more. For about another 21 per cent, rules had not been proposed.