Ben Bernanke actually said...

compensation structures led to misaligned incentives and excessive risk taking, contributing to bank losses and financial instability.

Bernanke highlights how compensation structures contributed to the financial crisis.

02/14/2012

More Ben Bernanke Quotes

Our mission as set forth by the Congress is a critical one: to preserve price stability; to foster maximum sustainable growth in output and ...

A default by the U.S. Government would be extremely disruptive.

I agree with your analysis of GSEs.

It is also important, of course, for community banks to be well-capitalized so that they can continue to lend during difficult periods.