City Controller John Liu says Wall St. execs should be responsible for risky deals

Embattled City Controller John Liu wants to hold financial fat cats accountable if their firms’ wheelings and dealings get out of control.

He demanded on Wednesday that three major investment firms — Goldman Sachs, JPMorgan Chase and Morgan Stanley — recoup pay from senior executives if employees engage in risky or unethical behavior.

“No one should profit or be rewarded with bonuses when engaged in improper or unethical behavior,” Liu said.

The controller noted that each of the three firms has paid more than $100 million in the past 18 months to settle state or federal charges connected to mortgage securities.

Liu’s demands do carry some weight in the financial world. He oversees the city’s $108 billion pension funds, which, as of Dec. 19, held $483.3 million worth of shares in the three firms.

The boards of the three firms would have to vote on his suggestions.

Liu’s campaign has had some financial trouble of its own.

A Liu intermediary who was raising dollars for his 2013 mayoral bid was indicted by federal prosecutors last month.

Xing Wu (Oliver) Pan was charged with recruiting 20 straw donors to help an undercover agent posing as a businessman skirt campaign finance laws.

Liu has not been charged with any wrongdoing, but the feds are still looking at his fund-raising.

http://www.nydailynews.com/new-york/city-controller-john-liu-wall-st-execs-responsible-risky-deals-article-1.995278