{"id":190102,"date":"2010-01-07T19:46:00","date_gmt":"2010-01-08T00:46:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2010\/01\/07\/a-very-good-idea\/"},"modified":"2010-01-07T19:46:00","modified_gmt":"2010-01-08T00:46:00","slug":"a-very-good-idea","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2010\/01\/07\/a-very-good-idea\/","title":{"rendered":"A Very Good Idea"},"content":{"rendered":"<p>The FDIC is looking to <a href=\"http:\/\/www.cnbc.com\/\/id\/34747600\">use a formula for its insurance fees that is driven by banker pay<\/a>:<\/p>\n<blockquote style=\"color: rgb(0, 0, 153);\"><p>U.S. regulators are set to consider a plan that would tie the amount banks pay for deposit insurance to the riskiness of the institutions&#8217; pay structures, a source familiar with the matter said Thursday.<\/p>\n<p>Under the proposal to be considered next week by the board of the Federal Deposit Insurance Corp, banks that base compensation on solid performance metrics and include measures such as &#8220;clawbacks&#8221; would pay less for deposit insurance, the source said, speaking anonymously because the proposal has not yet been released.<\/p>\n<p>Banks with riskier schemes that reward short-term gains would have to pay higher fees. <\/p><\/blockquote>\n<p>This is a good start, but it&#8217;s too easy for the bankers to game, and gaming financial contracts is <span style=\"font-weight: bold;\">what bankers do<\/span>.<\/p>\n<p>Set the fee based on total remuneration of the highest paid person at the bank, including bonuses.<\/p>\n<p>For each multiple of the President of the United State&#8217;s salary ($400K) raise the insurance fee by 1 basis point (0.01%).<\/p>\n<p>If your highest paid guy gets $4 million in a year, the surcharge is a manageable 0.1%, if he gets $40 million a year, it&#8217;s 1%, if it&#8217;s $70,324,352, which is what <a href=\"http:\/\/en.wikipedia.org\/wiki\/Lloyd_Blankfein\">Lloyd Blankfein received in 2007<\/a>, then it is 1\u00be%.<\/p>\n<p>That should cut down on banker bonuses.<\/p>\n<p>Hell, make it a payroll tax, and apply it to businesses across the board.  It would cut down on overpaid athletes too.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The FDIC is looking to use a formula for its insurance fees that is driven by banker pay: U.S. regulators are set to consider a plan that would tie the amount banks pay for deposit insurance to the riskiness of the institutions&#8217; pay structures, a source familiar with the matter said Thursday. Under the proposal &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[975,1004,1045,985],"tags":[],"class_list":["post-190102","post","type-post","status-publish","format-standard","hentry","category-employment","category-finance","category-insurance","category-regulation"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/190102"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=190102"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/190102\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=190102"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=190102"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=190102"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}