Reasoning Fail

Um…about that executive pay cap included in the “stimulus” bill:

President Barack Obama’s economic team tried to keep Democratic allies negotiating the stimulus bill from limiting paychecks for executives at banks in need of a bailout. Treasury Secretary Timothy Geithner and economic aide Lawrence Summers failed.

Sen. Christopher Dodd, chairman of the Senate Banking, Housing and Urban Affairs Committee, inserted strict rules into the $787 billion economic stimulus package over the White House’s objections. Dodd’s limits on bankers’ bonuses are significantly more aggressive than those sought by Obama or Geithner in recent days, with much fanfare.

Dodd, D-Conn., said the restrictions — an executive making $1 million a year in salary could receive only $500,000 in bonus money, for example — are necessary if Obama plans to ask Congress for more money to save the financial sector.

“It will never happen as long as the public perceives that there are people getting rich,” Dodd said in an interview. “Save their pay or save capitalism.”

Considering that this applies to bankers at companies that have failed at their #1 responsibility — handling money — and as a result are the starving baby to our Salma Hayek, remarks on both ends of this are amusing:

  • Obama’s people think it’s too strict of a limit on corporate welfare recipients even though in principle they should get nothing.
  • If, as Dodd states, capitalism requires regular infusions of money into the accounts of zombie corporations against the will of the general public, what is there worth saving?

It is ridiculous that the banks are getting bailed out at all.  But damn, could we AT LEAST see during the discussion of the next phase some “you ungrateful bastards!” type talk in response when the finance sector spokespeople balk at the limits?  If the system is going to be fraudulent and make no structural sense, at least entertain us while the ship sinks.

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About b-psycho

Left-libertarian blogger & occasional musician.
This entry was posted in economics, fevered barking. Bookmark the permalink.

2 Responses to Reasoning Fail

  1. BSands says:

    WHO’S LOOKING AT THE COMPENSATION OF THE HEALTHCARE INSURANCE EXECUTIVES?

    The health insurance companies have played a major role in our current healthcare crisis. They make huge profits and their CEOs make millions, while the rest of us are denied care.

    ANNUAL COMPENSATION OF HEALTH INSURANCE COMPANY EXECUTIVES (2006 and 2007 figures):

    • Ronald A. Williams, Chair/ CEO, Aetna Inc., $23,045,834
    • H. Edward Hanway, Chair/ CEO, Cigna Corp, $30.16 million
    • David B. Snow, Jr, Chair/ CEO, Medco Health, $21.76 million
    • Michael B. MCallister, CEO, Humana Inc, $20.06 million
    • Stephen J. Hemsley, CEO, UnitedHealth Group, $13,164,529
    • Angela F. Braly, President/ CEO, Wellpoint, $9,094,771
    • Dale B. Wolf, CEO, Coventry Health Care, $20.86 million
    • Jay M. Gellert, President/ CEO, Health Net, $16.65 million
    • William C. Van Faasen, Chairman, Blue Cross Blue Shield of Massachusetts, $3 million plus $16.4 million in retirement benefits
    • Charlie Baker, President/ CEO, Harvard Pilgrim Health Care, $1.5 million
    • James Roosevelt, Jr., CEO, Tufts Associated Health Plans, $1.3 million
    • Cleve L. Killingsworth, President/CEO Blue Cross Blue Shield of Massachusetts, $3.6 million
    • Raymond McCaskey, CEO, Health Care Service Corp (Blue Cross Blue Shield), $10.3 million
    • Daniel P. McCartney, CEO, Healthcare Services Group, Inc, $ 1,061,513
    • Daniel Loepp, CEO, Blue Cross Blue Shield of Michigan, $1,657,555
    • Todd S. Farha, CEO, WellCare Health Plans, $5,270,825
    • Michael F. Neidorff, CEO, Centene Corp, $8,750,751
    • Daniel Loepp, CEO, Blue Cross Blue Shield of Michigan, $1,657,555
    • Todd S. Farha, CEO, WellCare Health Plans, $5,270,825
    • Michael F. Neidorff, CEO, Centene Corp, $8,750,751

    This executive compensation could be used to provide quality healthcare for millions of Americans! THE HEALTH INSURANCE INDUSTRY MUST BE REGULATED AS WELL.

    If you want to learn more, go to:
    http://www.insurancecompanyrules.org/learn_more/the_roster/

  2. b psycho says:

    Actually if it wasn’t for the deliberate cartelizing of health care in the first place, those people you list never would’ve been able to extract those millions.

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