Getting paid to manage money may soon be less restrictive at BlackRock than at JPMorgan Chase under a U.S. proposal that could make it harder for Wall Street banks to compete for talent.
Bloomberg News reports that sweeping compensation rules released by six federal agencies last month reserve the toughest constraints - including bonus deferrals and long-term clawbacks - for financial firms with huge balance sheets consisting mostly of their own assets. Since firms like BlackRock primarily handle client money, their fund managers would face less-severe limits than someone doing similar work inside a giant bank.
If enacted as-is, the pay rules could hurt Wall Street firms that have been trying to grow their wealth management businesses since the 2008 financial crisis.
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