Wednesday, February 4, 2009

Obama caps Wall St. salaries for bailout

President Barack Obama made a great move today calling for a salary cap on executive pay for companies drawing from the bailout fund.

The "common sense" cap is $500,000 for companies that accept substantial amounts of bailout money.

"We all need to take responsibility," said Obama.

"And this includes executives at major financial firms who turned to the American people, hat in hand, when they were in trouble, even as they paid themselves their customary lavish bonuses.

"We're asking these firms to take responsibility, to recognise the nature of this crisis and their role in it."

Last year, Wall Street executives received $18.4bn in bonuses, and some companies like Citigroup continued to spend on extravagant executive perks despite drawing from the government corporate dole, i.e., taxpayer money.



FOXNews

Obama Calls for ‘Common Sense’ on Executive Pay
New York Times - 1 hour ago
President Obama and Treasury Secretary Timothy F. Geithner at the White House, where they spoke about executive compensation. By EDMUND L. ANDREWS and VIKAS BAJAJ WASHINGTON - President Obama on Wednesday announced a salary cap of $500000 for top ...
Obama unveils executive pay cap BBC News
US places limit on executive pay for bailout recipients International Herald Tribune

5 comments:

Helene said...

While I believe less is more when it comes to government intervention, on this issue I wholeheartedly agree that income and perks should be limited for those who participate in the bailout until the money has been repaid.

For example: If you loan me money to assist me in paying my mortgage because I’ve fallen on hard times (e.g. unemployment) and I turn around take a trip to Paris and buy a new porche, you’re right to be outraged and upset. Worse still, if someone else compels you to loan me the money (the government) and I turn around and take that trip and make that purchase you’re likely to be even more upset because you had no direct, immediate say in the loan.

Yes, you elect the officials who sign off on these decisions, but once they make decisions like this that you don’t agree with you’re stuck until their terms are up.

When the government decides to loan MY tax dollars to institutions which I have no direct interest in, I demand that reasonable restrictions be attached to their acceptance of my hard earned money.

Buddha said...

I am trying to refinance my mortgage.
I have a 6% 30 years fix now.
I have a credit score of 700, perfect income history, 5 time more equity than debt, perfect candidate.
I can't get a loan below 5% apr.
WHY?
Because the greedy bankers don't give a shit about me or you the economy or the country.
All they care about is their profits and huge salaries,
everything else expandable.
What is Obama doing for you?
NO THING!!!

Anonymous said...

1 trillion dollar word deficite. not looking for a bailout.Justlooking for bail in you know J O B. LISTEN, I HAVE WORKED ALL MY LIFE MANUAL CONSTRUCTION LABOR. NO HOUSE NO HELP NO ONE BUT ME AND MY HEALTH AND PAYCHECK. SOON TO BE SCREEWED EVEN MORE KNOW I AM PAYING FOR THE STIMULUS.THANKS, KEEP UP WITH THE GOVERNMENT GREED. I KNOW ITS ALL THE WORKING PEOPLES FAULT.

Anonymous said...

BROKEBACK MEN FOR HIRE. THANK YOU STIMULUS.CONTACT US AT I LEFT MY WALLET ON BROCKASS MOUNTAIN.COM.

Anonymous said...

Dude, the stimulus plan will create construction jobs by direct government spending!

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