Voluntary codes: Coded signals

The prospect of hanging wonderfully concentrates the mind. Samuel Johnson’s observation is currently relevant to many financial professions – the prospect of highly restrictive laws leads to a clear vision of the need for less constraining self-regulation. The Institute of International Finance (IIF), a trade group for big banks, is the latest to see the light. Members will be discussing a code of conduct for risk-related pay at a meeting on Wednesday, according to the Financial Times. The goal...