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Wall Street Bonuses at Risk Amid New Clamor to Finish Dodd-Frank

  • Elizabeth Warren demands action on required pay constraints
  • Banks face fresh threat with Democrats controlling government
The New York Stock Exchange on Wall Street in New York, U.S.
The New York Stock Exchange on Wall Street in New York, U.S.Photographer: Michael Nagle/Bloomberg

Titans of finance, already threatened by President Joe Biden’s push for the biggest tax hike on wealthy Americans in decades, face another peril: Progressives are demanding action on a long-stalled requirement that Washington clamp down on Wall Street bonuses.

Behind the scenes, consumer groups such as Public Citizen and Better Markets are reminding administration officials that the never-finished pay constraints are mandatory under the Dodd-Frank Act. Democrats -- upset that the rules languished when Donald Trump occupied the White House -- are also exerting pressure, arguing that years after the 2008 financial crisis, banks’ compensation practices continue to incentivize dangerous behavior.