WaveNet Pharma

Note to Regulators: It's About Capitalization, Not Compensation

This is completely flawed logic!
As long as the Government ( & the taxpayer) has the responsibility to keep national banks from imploding, it also has the duty to control the factors behind that implosion.
These banks went onto gambling as gigantic hedge funds with their shareholders money with the tacit understanding that if they run out, there would be more given to them by the government to continue gambling. It almost wrecked the foundation of capitalism and should be reined in.
A bank is not a casino and should never have been allowed to become one. Imagine where Vegas would be if all casino employees were compensated without limits on the profits they make : it would cease existence as excessive risk-taking would sweep them away.
No, all financial institutions that pose a systemic risk should have caps on the returns they are allowed to make. That would indirectly cap their compensation and control irresponsible risk taking.