Banking on the Watchdog

The banks supervisor dared intervene in the senior executives’ club to protect the interests of the system he oversees and its clients.

“I think the system has matured and I hope bankers will act responsibly. Public opinion and international regulations cannot be ignored,” Banks Supervisor David Zaken said on Wednesday, in announcing his decision to cap the compensation paid to banking executives and to limit what he termed their “unreasonable” bonuses. Limiting variable compensation (bonuses and stock options) to 100...