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.