Government widens control over paychecks (to non-bailed out companies)

WaPo ^

[Sir Gawain]

The Federal Reserve joined the Treasury Department on Thursday in imposing new limits on executive pay, extending the government's control over compensation at taxpayer-owned companies to institutions that are merely government regulated.

{snip}

However, the Fed's proposed rules have wiggle room: The guidelines would let banks set their own compensation but give the Fed veto power over pay practices that it determines could threaten the safety and soundness of a bank. They would extends the regulators' reach into pay practices affecting tens of thousands of bank employees, from senior executives to traders of complex securities.

[tioga]

The only thing encouraging me is that Palin has the guts to turn all this back when she gets in.........let’s hope we have cleaned out Washington so she has a Congress to work with. I don’t see any romneymChuckster out there who would dare. She did a lot in Alaska, she can do it again.

[org.whodat]

Years ago I had a good friend that was CEO of my bank, he went to jail for five years for misstating his financial statement on a loan. It did not matter that he paid the loan back. This man lied on his financial forecasts and paid himself in advance for profits that never happened and never will.

It is sort of like lets you and I start a bank, we get 100,000 people to open accounts, we decide we are going to-do very well, so we take the deposits and pay 80% of them to ourselves for a bonus. What the hell it's only tax payer insured and not our money to begin with. Now I wonder if that guy would like to sell madoffs boat.

Today the tax payers bailout failure and give them a bonus and some fools think thats the proper thing to-do.

[benjamin032]

OK, if a Bank Exec violates a federal statute then he gets a ticket to jail. But if his buddy does everything right why does he get a pay cut? Who the hell does the federal government think they are to go around and tell people what they can and can't earn?

[org.whodat]

When it's my money it is fine with me pay the taxpayers back and then follow the law. End of story.

You do know that a corporation is a creation of law, it isn't a Saint, and what laws gives laws can take away. Maybe they, and you, should buy the corporation and take it private.

[Jet Jaguar]

ping.

[benjamin032]

What private? This administration is taking huge strides towards privatizing all industry. The banks were, in part, forced to take the money, not allowed to pay it back early, and are now being told how to compensate their executives. I agree that, if they took the money from tax payers, they should be subject to whatever strings are attached. I do not think those strings should be longer then the terms of the loan, and they should not reach into businesses that did not take any money.
Currently the Government is looking into regulating pay for ANY business that is otherwise federally regulated.

[org.whodat]

You sound like a broken record, repeating talking points.

Now read slowly, the POS executives that worked at those failed banks and AIG can pay themselves whatever they wish, just as soon as they pay the money back. Until then they and you can stop whining about it. They should have been closed and the bankruptcy attorneys called in. Then let them whine about their unearned salaries. I don't believe in welfare and I damn sure don't believe in rewarding failure.

[benjamin032]

I agree about the bankruptcy. Beyond that, you can take your insults for a long walk. So much for a civil argument.

[Balding_Eagle]

You glossed over the gun to the head issue.

[org.whodat]

I wasn't having an argument I was stating an opinion, which is the same as many other people.

[org.whodat]

Gun to the head issue!!! None starter, they could have taken it up with the bankruptcy judge. Go borrow some money off of a bookie and see what happens when you don't play by his terms. If you take the money dance to the music.

[Balding_Eagle]

You are such a shallow, short term thinker. The problem goes MUCH further back than that.

[Nachum]

Thanks JJ,

The list, ping

[Dubya-M-DeesWent2SyriaStupid!]

it is surreal.

[Tzimisce]

Well we all knew this was coming.

Just as we knew a lot of liberal people would cheer.

Too bad we can’t cap the pay of Czars - because that would require us knowing how much they make to begin with.

[P-Marlowe]

As much as I disagree with the outrageous salaries of CEO’s and other corporate officers ... it is a matter between the corporate officers and the board of directors/shareholders of the company.

As long as the Federal Government is insuring deposits at these banks, the Federal Government has the right to regulate just about everything that happens inside a bank including executive salaries.

The Administration’s action, are in my estimation, unconstitutional.

That may be true, but only if the banking system itself is unconstitutional.

[Soothesayer9]

“The banks were, in part, forced to take the money, not allowed to pay it back early”

- Um, what?
http://online.wsj.com/article/SB124455528999797923.html

[Soothesayer9]

He didn’t insult you. He just outwitted you.

[Lilpug15]

Time for me to be that obnoxious friend who says “told ya so.”

Since so many didn’t believe in the slippery slope concept re: government.

[jarofants]

You can bet they will not touch GE!!!