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Performance Bonds for Bankers?
A new post by Liberty Street Economics, which operates under the auspices of the Federal Reserve Bank of New York, argues the case for performance bonds for bankers to help combat misconduct. The post, which does not necessarily reflect the view of the New York Fed or wider Federal Reserve System, argues, “Given the long list of problems that have emerged in banks over the past several years, it is time to consider performance bonds for bankers.” The authors, Hamid Mehran and Joseph Tracy, suggest the bonds, “could provide more incentive for bankers to take better care of our financial system”.

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