Special review coming for big banks

Sarbanes-Oxley requires the SEC to review all public companies' annual earnings reports on a regular basis, at least once every three years. According to Reuters a review of the nine biggest financial services companies is in the works. That's hardly a surprise, given the fallout from the credit crunch. What's more, special emphasis may be placed on executive pay policies.

The TARP required companies receiving bailout funds--and all the biggies were basically forced to accept money--to restrict so-called "golden parachutes" and reduce the tax deduction on exec pay. Some are arguing for restrictions on bonuses as well, which would be a radical step. John White, director of the SEC's corporation finance division, says the agency wants to look at company disclosures to make clear exactly how pay practices have changed, reports Reuters. You do not want to be seen as soft on pay if you're taking bailout funds.  

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