Financial Times FT.com

US banks

Fed tells banks to adopt pay rules early

By Francesco Guerrera in New York and Patrick Jenkins in London

Published: November 2 2009 21:57 | Last updated: November 2 2009 21:57

The Federal Reserve told big US banks on Monday that draft pay guidelines aimed at curbing excessive risk-taking will have to be followed in this year’s round of bonus payments, even though the rules do not officially come into force until 2010.

The call for a speedy implementation of the proposals underlines the Fed’s desire to change Wall Street’s pay practices and stave off a public backlash ahead of what promises to be a bumper bonus season at many banks.

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