WASHINGTON, D.C. – Thursday marks the 12th anniversary of the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act, adopted in response to the financial crash of 2008. The law set up the U.S. Consumer Financial Protection Bureau and helped ensure safer banking through some 400 required rules. But some rules remain unfinished, including Section 956, which calls for banker pay reform. Bartlett Naylor, financial policy advocate for Public Citizen, released the following statement:
“Bankers caused the 2008 financial crash because their pay packages promoted reckless lending and even fraud.
“Congress correctly required financial regulators to reform banker pay packages and set a deadline for May 2011 to finalize this rule. Yet more than 18 months into the Biden administration, this rule isn’t even listed in the agendas for any of the responsible agencies except the U.S. Securities and Exchange Commission.
“JP Morgan’s London Whale fiasco, Wells Fargo’s fake accounts scandal, and Goldman Sachs’ Malaysian bribery crimes all show that Wall Street won’t reform itself without pay reforms. It’s long past time to finish this rule.”