Wow, the Fed is taking what would appear to be a very hard line on pay practices at the top 25 banks. It has floated plans to scrutinize--and reject if it deems necessary--pay practices at these banks, including pay for many employees, not just the top earners.

Pay packages would require approval in advance from the Fed. This has the feel of a trial balloon to some extent. It will not go over well on Wall Street, but the industry has certainly brought a lot of criticism and anger on itself. It will like rely on clawbacks and long-term incentives. These were ideas that top banks were embracing anyway. So the impact may be more symbolic than substantive. Still, it is eye-catching. 

For more:
- here's a CNBC write up

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