The administration of President Barack Obama will move to increase oversight of executive pay at all banks, Wall Street firms and possibly other companies as part of a sweeping plan to overhaul financial regulation, The New York Times reported.
Citing unnamed government officials, the newspaper said on its website that the plan was expected to be unveiled this week in preparation for Obama?s first foreign summit next month.
The proposal would seek a broad new role for the Federal Reserve to oversee large companies, including major hedge funds, the report said.
It will also propose that many kinds of derivatives and other exotic financial instruments that contributed to the crisis be traded on exchanges or through clearinghouses so they are more transparent and can be more tightly regulated, according to the paper.
And it will call for federal standards for mortgage lenders beyond what the Federal Reserve adopted last year, as well as more aggressive enforcement of the mortgage rules, The Times said.
The administration is still debating the details of its plan, the report said. One proposal could impose greater requirements on company boards to tie executive compensation more closely to corporate performance and to take other steps to ensure that compensation was aligned with the financial interest of the company.
The new rules will cover all financial institutions, including those not now covered by any pay rules because they are not receiving federal bailout money, The Times said.
The report follows a scandal surrounding American International Group, a troubled giant insurance giant receiving federal assistance to stay afloat.
AIG, alive only thanks to 170 billion dollars in government rescue money, dished out 165 million dollars in bonuses to top executives, including some in the division blamed for putting the once-mighty insurer on life support.
US media reported Saturday that the insurance giant had actually paid 218 million dollars in bonuses, over 50 million more than had been disclosed.
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