In 2016,federal regulators proposed that at least half of the bonuses investment banks pay top managers

Question

Quizplus · Accepted Answer

Federal regulators proposed that at least half of the bonuses investment banks pay top managers be deferred for four years. This was aimed at preventing excessive risk-taking behavior among bankers as they would have to wait for a longer period before receiving their bonuses. This would give them more time to consider the long-term consequences of their actions and avoid taking unnecessary risks. It would also help ensure that the banks have sufficient capital reserves to tide over any unforeseen crisis. A and D are not correct because the proposal does not mention paying back the government or completely eliminating bonuses. B is also incorrect because although stock options can be part of the bonus, the proposal did not mandate a specific percentage to be paid in the form of stock options.

In 2016,federal Regulators Proposed That at Least Half of the Bonuses