New Anti-Bonus Law Passes House Panel

barneyfrank tbi

Remember back in March when politicians were talking about banning bonuses or levying 90% taxes on them?

That died out, and for a while, bonuses were out of the news. But AIG (AIG) is still dealing with compensation issues, and Citigroup’s (C) Phibro unit has brought the subject back to the fore. And politicians haven’t forgotten either.

Today, Barney Frank’s house committee passed a new anti-bonus bill:

The bill, adopted 40-28 today, would allow agencies such as the Securities and Exchange Commission to prohibit compensation that encourages financial companies to take “inappropriate risks.” The House and Senate must pass the bill before the president signs it into law. The House may vote by July 31.

“There is a risk to the system when the incentive structure is huge,” Committee Chairman Barney Frank, a Massachusetts Democrat, said as the committee debated the legislation during a meeting in Washington.

Read the whole thing >

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