Re: Article 2 -- additional comment

From: Mark Taranto
Affiliation:
Address: MarkTaranto@comcast.net
Date: 25 Oct 2006
Time: 09:20:55

Comments

I think it is more of a certainty than a fear. Unfortunately, changing incentives on Wall Street is petty hard to do. In the 1980s, one Wall Street firm decided to pay bond salesmen a bonus based on the quality of the trades their clients made rather than a commission on all trades. Too much was being paid in commissions for trades that were unprofitable with the firm. But the two best salesman threatened to go to another firm (taking their business with them) if this plan was implemented. The firm had to back down.

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