Moreover, the payments occurred during a time when so many Americans are struggling to find jobs, seeing their wages reduced or watching their retirement savings plummet as a result of a crisis they had no hand in creating. This feeling of outrage underscores the urgent need to reform the system of compensation at our financial institutions to more closely align the incentives of executives, owners and taxpayers. Congress saw fit to impose appropriate compensation restrictions on recipients of Troubled Asset Relief Program (TARP) funding, and we think it is crucial for Congress and the U.S. Department of the Treasury to continue to craft effective and sensible policies in this area. 2  BIS Review 35/2009  Although oversight of TARP-related compensation matters rests with the Treasury Department, the New York Fed has played a role since September in reviewing the adequacy of AIG's corporate governance procedures. This review has helped to identify longstanding deficiencies with respect to compensation committee governance, compensation benchmarking and lack of centralized control over compensation policy. We will continue to work with our colleagues at Treasury and the independent trustees to ensure that AIG's management properly addresses these deficiencies. Ongoing involvement with AIG The total package of assistance that the Federal Reserve and Treasury Department have committed to AIG has established a more durable capital structure for the company that gives AIG greater time and flexibility to execute its asset disposition plan to repay government funds.
There are many sources of information on labor market conditions that I regularly consult. They range from very granular data that zero in on individuals’ experiences in the labor market, to indices of job openings, how many people are quitting their jobs, and labor market participation, to name a few. But it’s not just these hard numbers that matter. I also find surveys of households and businesses provide valuable and timely perspectives about economic conditions. For example, there’s a questionnaire that asks people whether jobs are “hard to get.” It’s helpful because it gives the perceptions of normal people (and not economists!) about whether there are a lot of open positions. This survey continues to report that it’s relatively easy to find work, which is a very good sign about the strength of the economy.2 Beyond the economic data and surveys, financial market indicators are a critical source of up-tothe minute information on how investors view the economy. In addition, stock prices and interest rates affect the spending decisions of households and businesses, and the value of the dollar affects demand for exports and imports, so these are important factors shaping the economy’s trajectory. More broadly, I look at a wealth of data on international financial market developments and banking conditions, which feed into my understanding of the global outlook. Finally, and perhaps least well known, I spend a great deal of time speaking with members of the public, at our Board and Advisory Group meetings, community and business leader forums, and events like today’s.