The Labor Market for Bankers and Regulators

The Harvard Law School Forum on Corporate Governance and Financial Regulation 2014-04-08

Summary:

Editor's Note: The following post comes to us from Philip Bond of the Department of Finance and Business Economics at the University of Washington, and Vincent Glode of the Department of Finance at the University of Pennsylvania.

The financial industry is heavily regulated. Whether it is in terms of spending or number of employees, financial regulation represents more than a third of all business- and industry-related regulation in the United States (De Rugy and Warren, 2009), even though the financial sector only contributes to 10% of the country's GDP. However, many commentators express grave doubts about the current efficacy of financial regulation. For example, The Economist published a 2010 article entitled “Finance’s other bosses” in which it asked: “Does it really matter who is in charge of the regulators? The grunt work of supervision depends on more junior staff, who will always struggle to keep tabs on smarter, better-paid types in the firms they regulate.”

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Link:

http://blogs.law.harvard.edu/corpgov/2014/04/08/the-labor-market-for-bankers-and-regulators/

From feeds:

Blogs.law Aggregation Hub » The Harvard Law School Forum on Corporate Governance and Financial Regulation

Tags:

academic research banking & financial institutions financial regulation banker bonuses banks labor markets pay for performance philip bond regulators vincent glode

Authors:

R. Christopher Small, Co-editor, HLS Forum on Corporate Governance and Financial Regulation,

Date tagged:

04/08/2014, 09:20

Date published:

04/08/2014, 09:16