Where Is the Wall-Street Pay Reform?

Runaway executive bonuses on Wall-Street are here to stay, says John Cassidy at The New Yorker. The financial writer laments Washington’s failure to curtail abusive payouts: “Despite widespread anger on the part of the public, and a rare consensus among economists that faulty compensation structures were partly responsible for the financial crisis, the U.S. political system has failed to rise to the challenge.” The problem, Cassidy says, in an incentive structure that promotes short-term risk at the expense of long-term stability.