The pay policies of Wall Street firms were dealt a couple of blows this week as the Treasury and the Federal Reserve announced moves to regulate compensation. The crackdown is expected to influence the pay of financial firms' leading executives, traders, deal makers and others who could affect the soundness of the banks with their decisions. According to compensation experts, it will be difficult for the institutions to avoid the new rules, but individuals could move to firms not included in the oversight, such as hedge funds or private-equity funds.

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