Today in the News:
– US regulators are forcing big banks to rein in bonus pay
– Ralph Lauren Corporation has to cough up $1.5 million-plus to settle charges in Argentina bribery
– and the City Council wants to raise smoking age in New York City from 18 to 21 — the oldest age in the country
U.S. banks are bowing to regulators’ concerns about the size of executive pay and its role in financial industry risk-taking. Seven large U.S. financial-services firms, including PNC Financial Services Group, Capital One Financial, and Discover Financial Services, said they are scaling back the maximum bonuses awarded to executives who beat their performance targets, according to regulatory filings. Since the financial crisis the Fed has urged banks to cap bonuses in cases where they could encourage executives to take too much risk. According to the Fed, before the crisis, banks focused too much on short-term profits and too little on risk, when designing bonus plans for employees and executives. This is the latest hit to Wall Street compensation, which has shriveled in recent years because of smaller bonuses and poor stock performance.
A top exec of a Ralph Lauren subsidiary in Latin America, bribed customs officials for five years, to get goods into Argentina. Ralph Lauren Corporation discovered illegal payoffs during an internal review in 2010, then fired the unidentified general manager and other employees involved and shut down stores in Argentina. The firm acknowledged that the executive — who is a dual citizen of the United States and Argentina — bribed customs officials to help speed the clearance of goods through inspection.Brooklyn federal prosecutors announced an agreement with Ralph Lauren Corp. to give up more than $700,000 in ill-gotten profits and pay an $882,000 penalty. Under the agreement reached with the Justice Department, the corporation will be under close scrutiny for a two-year period. The agreement warns the company that future missteps or failure to disclose other past misconduct could open the door to criminal prosecution.
After three terms of aggressive public-health measures championed by Mayor Bloomberg, City Council Speaker Christine Quinn is spearheading the city’s latest crusade to bar under-21s from buying cigarettes. A Council bill announced Monday by Quinn and Health Commissioner Thomas Farley would make New York the first major city in the country to raise the minimum age to buy tobacco from 18 to 21. The bill is a sign that Quinn, a leading mayoral contender, would carry on Mayor Bloomberg’s trademark public health agenda if elected. Bloomberg, who opposed raising the smoking age in 2006, has come around to the idea, though he is taking a background role as Quinn takes center stage on the effort. The bill is not aimed at taking away all the fun from smokers but to save lives! Sorry dear tobacco industry.
Today in the News:
– US regulators are forcing big banks to rein in bonus pay
– Ralph Lauren Corporation has to cough up $1.5 million-plus to settle charges in Argentina bribery
– and the City Council wants to raise smoking age in New York City from 18 to 21 — the oldest age in the country
U.S. banks are bowing to regulators’ concerns about the size of executive pay and its role in financial industry risk-taking. Seven large U.S. financial-services firms, including PNC Financial Services Group, Capital One Financial, and Discover Financial Services, said they are scaling back the maximum bonuses awarded to executives who beat their performance targets, according to regulatory filings. Since the financial crisis the Fed has urged banks to cap bonuses in cases where they could encourage executives to take too much risk. According to the Fed, before the crisis, banks focused too much on short-term profits and too little on risk, when designing bonus plans for employees and executives. This is the latest hit to Wall Street compensation, which has shriveled in recent years because of smaller bonuses and poor stock performance.
A top exec of a Ralph Lauren subsidiary in Latin America, bribed customs officials for five years, to get goods into Argentina. Ralph Lauren Corporation discovered illegal payoffs during an internal review in 2010, then fired the unidentified general manager and other employees involved and shut down stores in Argentina. The firm acknowledged that the executive — who is a dual citizen of the United States and Argentina — bribed customs officials to help speed the clearance of goods through inspection.Brooklyn federal prosecutors announced an agreement with Ralph Lauren Corp. to give up more than $700,000 in ill-gotten profits and pay an $882,000 penalty. Under the agreement reached with the Justice Department, the corporation will be under close scrutiny for a two-year period. The agreement warns the company that future missteps or failure to disclose other past misconduct could open the door to criminal prosecution.
After three terms of aggressive public-health measures championed by Mayor Bloomberg, City Council Speaker Christine Quinn is spearheading the city’s latest crusade to bar under-21s from buying cigarettes. A Council bill announced Monday by Quinn and Health Commissioner Thomas Farley would make New York the first major city in the country to raise the minimum age to buy tobacco from 18 to 21. The bill is a sign that Quinn, a leading mayoral contender, would carry on Mayor Bloomberg’s trademark public health agenda if elected. Bloomberg, who opposed raising the smoking age in 2006, has come around to the idea, though he is taking a background role as Quinn takes center stage on the effort. The bill is not aimed at taking away all the fun from smokers but to save lives! Sorry dear tobacco industry.