Banks pushed to change incentives


Banks are coming under increasing pressure from regulators, politicians and bank shareholders to review their pay and bonus structures to ensure traders are not incentivised to take excessive risks.

Financial institutions have reported billions of dollars of losses resulting from US subprime mortgage exposures since the third quarter of last year, while Société Générale revealed a EUR4.9 billion loss in January, attributed to an alleged rogue trader attempting to bolster his annual bonus. The

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