Following the Wells Fargo fake account scandal, which is still unfolding, the state of New York is taking measures to safeguard against similar actions from taking place, reports HousingWire staffer Ben Lane.

Earlier in the week, New York Gov. Andrew Cuomo announced that the state’s financial regulator, the New York Department of Financial Services, is issuing “new guidance” designed to restrict incentive pay for bank employees, requiring banks to tie those incentives to proper corporate behavior.

Specifically, Cuomo’s office notes, all regulated banking institutions in the state are being notified that no incentive compensation may be tied to “employee performance indicators,” like the number of accounts opened or the number of products sold per customer, without “effective risk management, oversight and control.”

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