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Thursday, October 25, 2012

Penalise executives who make risky bets


President Barack Obama said the next important step 
for making the U.S. financial sector safer
is to make sure executive pay is less closely tied to risky bets.
 
In an interview to be published on Friday in Rolling Stone magazine..
 
.. the stability of markets is still at risk
because people making risky bets
are handsomely rewarded if the bets pay off,
but face limited consequences if those bets go sour.
 
"It tilts the whole system in favor of very risky behavior,"
he said.
"By the time the chickens come home to roost,
 they're still way ahead of the game."
 

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