US backtracks on pay caps to stop Wall Street exodusFebruary 17, 2009 Tim Reid in Washington President Obama is aiming to water down Democratic proposals on pay caps for banking executives because he fears a “brain drain” on Wall Street. In a move that has angered leaders of his own party, the President has indicated his concern that new caps on compensation — inserted into his $787 billion stimulus Bill, which he signs into law today - are too draconian and could limit banks' co-operation with his plan to stabilise the stricken financial sector. This month Mr Obama issued guidelines...