Efforts by the Obama administration and other branches of the government to curb extravagant compensation packages could instead hurt the value of financial firms, the Shadow Financial Regulatory Committee said Monday.
"It is ironic that the regulatory response to public outrage about extraordinary government subsidies and the compensation levels of key personnel could destroy value in exactly those firms in which the government has the greatest stakes," the committee said in a statement.
The group is comprised of industry experts — mostly academics — who meet periodically in Washington to critique financial policy.
The committee took the Obama administration and Congress to task for failing to address the status of the government-sponsored enterprises as part of regulatory reform legislation.
"If the goal of regulatory reform is to minimize the odds of future financial meltdowns, the committee believes that GSE reform must be included in the financial reform package," according to the committee's statement.
