Fed's Move To Curb Risk Called 'Quite Brilliant'

Good morning, and happy Friday to you. Here's what we're reading:

The Federal Reserve says it will crack down on executive pay at the 28 biggest banking institutions. The Fed hopes to stop bankers and traders from enriching themselves by taking excessive risks.

Simon Johnson hails the Fed's move as a "quite brilliant" means of dealing with the systemic dangers of being too big to fail. (Bonus: Responses from the PR departments of those who'd be regulated.)

By contrast, critics say the White House announcement that it will cut the pay of top earners at seven bailed-out banks amounts to throwing the public a bone. And in any case, Wall Streeters don't like either proposal. People want to work here but they want to be paid fairly," a Bank of America spokesperson told Bloomberg.

On Capitol Hill, Senate Majority Leader Harry Reid (D-Nev.) is pushing for a government-run health plan, the so-called public option, to be included in the health care overhaul legislation. Reid thinks the measure can gather support if it lets states opt out.

The U.K. economy shrank 0.4 percent in the third quarter, a record sixth consecutive negative report. Government analysts had predicted growth of 0.2 percent. So much for that.

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