After a recent report by New York Attorney Andrew Cuomo's office revealed that Wall Street banks that had received 'exceptional' federal bailouts had given their executives substantial bonuses, irrespective of the bank's performance, the US House of Representatives has voted for a legislation to prevent banks from paying bonuses that promote unwarranted risk taking.

The House bill, which will now go to the Senate and likely be passed into law, is a noteworthy step in the direction of curbing excess bonuses to top executives of banks that may otherwise be struggling, especially in times like the ongoing recession.

Based on the Cuomo office report's remark that "Compensation for bank employees has become unmoored from the banks' financial performance", the proposed legislation includes suggestions like providing the shareholders with non-binding votes on executive pay; as well as imposing rules on the autonomy of those who make the decisions concerning compensation packages.

Commenting on the legislative move, Democrat Melvin Watt said: "This is not the government taking over the corporate sector... It is a statement by the American people that it is time to straighten up the ship."

However, the legislation has not been unanimously voted for, as some members opine that it would "undermine confidence in corporate America" and would appear more like "a government takeover" of the free enterprise structure of the country!