Analysis: Dodd-Frank might indirectly cut Wall Street compensation

12/13/2010 | Reuters

The Dodd-Frank Act does not say much about compensation for bank employees, but it might reduce banks' revenue and consequently put pressure on bonuses, according to Reuters. The law requires that derivatives trading move to exchanges when possible, which is likely to make that activity less profitable for banks. If so, incentive-added compensation will probably shrink, Reuters notes.

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