by Caitlin Kenney

Good morning! Here's what we're reading today:

The Federal Reserve is considering a new proposal that would give it final approval over policies that set pay for bankers. The Wall Street Journal reports that under the proposal, "the Fed could reject any compensation policies it believes encourage bank employees — from chief executives, to traders, to loan officers — to take too much risk." The plan is still far from completion but would not require congressional approval.

The SEC has put in place new rules for credit ratings agencies. The rules require ratings agencies to reveal more information on past ratings and the underlying data used to determine them. The SEC is also considering making ratings agencies subject to legal liability.

The controversial practice of flash trading maybe facing its demise. The SEC has proposed a rule to ban the practice, which uses fast computers that allow traders to see other competitors stock orders a fraction of a second before the market.

John Thain, the former CEO of Merrill Lynch, says he should have gone to Ikea instead of renovating his company's office with a $35,000 commode. Thain spoke about the renovations in a talk at the Wharton Business School where he also defended himself against allegations that he sped up bonuses for Merill employees.