Wall Street took home astounding pay packages before the economy crashed last fall, and the aftermath was disaster. Critics as big and sober as former Fed chair Paul Volker say crazy pay helped drive the risk that drove the meltdown.
Now, from the G20 to Congress to the Federal Reserve and Treasury Department, there are calls for some limits on the hyper Wall Street pay that helped crash — some say corrupt — the economy.
Will it happen? Will the mega-bonuses be reined in? How? And how much?
This hour, On Point: The New York Times' Gretchen Morgenson on taming Wall Street pay.
Joining us from Los Angeles is Kevin Murphy, chair of the Department of Finance and Business Economics at the University of Southern California’s Marshall School of Business and professor at the USC School of Law. In June, he testified before the House Financial Services Committee on executive pay and risks to the financial system.
This program aired on September 28, 2009.