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Does banker pay matter?
There have been two arguments for limiting bankers' pay. One is that it's a way to punish executives at corporations that took a taxpayer bailout. The other is that it's a way to reduce the incentives for taking risks and is thus key to the new regulatory structure. I don't buy the latter argument. It misunderstands, I think, the nature of a banker's risk.
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Cutting bankers' pay
The Obama administration is getting serious on bankers' pay:
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Regulating Derivatives
The House Financial Services Committee just approved an amendment mandating that derivatives traded between financial institutions must be traded on an exchange.
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