School of Law Professor Cornelius Hurley, director of the Morin Center for Banking and Financial Law and former counsel to the Fed Board of Governors, says executives at banks taking taxpayer bailout funds should give back bonuses that flowed from investments in toxic assets that are now crippling the industry.
“It is generally understood that so-called ‘claw-back’ provisions will be a standard practice in executive compensation going forward. When it comes to taxpayer bailouts, retroactive application of claw-back provisions should be a pre-condition to receiving funds. In other words, ‘give it back or get out’ should be the standard for our capital-deprived institutions.”
Contact Cornelius Hurley, 617-353-5427, firstname.lastname@example.org