Fed Urges Banks Including Goldman Sachs to Control Pay Risks

The Federal Reserve urged Goldman Sachs Group Inc., Deutsche Bank AG, Citigroup Inc. and 22 other large banks to take additional measures to control employee-pay practices that can put an entire company at risk.

All the banks have made progress based on guidance from regulators, the Fed said today in Washington in a report based on appraisals that began in late 2009. “Yet every firm also needs to do more” in reforming compensation practices that “were a contributing factor to the financial crisis,” policy makers said.