Financial Times FT.com

Fed's draft pay rules rein in risk-taking

By Krishna Guha and Tom Braithwaite in Washington and,Greg Farrell in New York

Published: October 23 2009 03:00 | Last updated: October 23 2009 03:00

In a landmark moment for US finance, the Federal Reserve yesterday unveiled draft rules for bankers' pay extending the reach of regulators deep into the compensation practices of leading financial firms.

But the Fed did not support a standard benchmark for the proportion of bonuses that should be deferred, in line with a proposal adopted by many European nations - raising fears over an uneven playing field between US and European banks.

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