In the News

The newly passed stimulus package does retroactive clawback on executive compensation for any bank which has received federal funds.

http://latimesblogs.latimes.com/money_co/2009/02/bank-pay-execut.html

Late fix in stimulus bill imposes tighter limits on bank pay

The economic stimulus bill passed by the Senate on Friday includes curbs on executive pay that go well beyond what Wall Street had been expecting.

Sen. Christopher Dodd (D-Conn.), the chairman of the Senate Banking Committee, slipped the provisions into the bill late in the process. The entire stimulus package now heads to President Obama for his signature.

From the Washington Post:

The bill limits bonuses for executives at all financial institutions receiving government funds to no more than a third of their annual compensation. The bonuses must be paid in company stock that can be redeemed only when the government investment has been repaid.

Unlike compensation rules the White House had previously issued for executives of companies getting additional government capital, Dodd made his measure retroactive, the Post said:

The limits in the stimulus bill would apply to top executives and the highest-paid employees at all 359 banks that have already received government aid.

"This is a big deal. This is a problem," said Scott Talbott, chief lobbyist for the nation's largest financial services firms. "It undermines the current incentive structure."

Talbott said banking executives expected certain restrictions would be applied to them but are concerned that some of the most highly paid employees, such as top traders, who bring in hefty sums for the company, would flee to hedge funds or foreign banks that have not accepted U.S. government funds.

Dodd’s move could backfire if it fuels another exodus of investors from battered bank stocks, which could weaken the institutions and force some to appeal for new government help.

The KBW index of 24 major bank shares plunged 14% this week to close at 26.11 on Friday, just above the 14-year low of 25.34 reached on Jan. 20. The index has dived 41% this year.

In a statement, Dodd said he was "delighted that my amendment to impose tough new limits on huge bonuses for executives working in firms that receive taxpayer funds will be included in the final economic recovery bill.

"The decisions of certain Wall Street executives to enrich themselves at the expense of taxpayers have seriously undermined public confidence in efforts to stabilize the economy. American taxpayers deserve better. With vigorous oversight by the Treasury Department and by Congress, these tough new rules will help ensure that taxpayer dollars no longer effectively subsidize lavish Wall Street bonuses.”

The Democrats just spent 787 Billion of our tax dollars, have they "volunteered" to cut their own pay or perks?  Not!  Another most important note and a prediction of the future I can make without even picking up a crystal ball:  First they were going to "create 4 million jobs", then it was "create or SAVE" four million jobs, now it is "create of SAVE" 3.5 million jobs.  Gee, didn't they notice that the new applications for unemployment dropped last week?

My prediction, anyone want to make wagershere?, they won't creat any jobs at least not more than a pittance in number so they will strut around saying they "saved" all these millions of jobs.  Nice twist or should I say spin since there is no way to prove it either way.

I wonder how many jobs saving the March Mouse for N Pelosi will create?  Anyone find it distrubing that the Democrats voted for this bill without even reading it?  Does that indicate their deep concern for the American tax payer's dollar.

Where was the fulfillment of all the pre election promises?

1.  Bi-Partisanship

2.  Transparency - bills will be posted for the public to read before they are passed

3.  Cuts in taxes for everyone making under 200,000 a year - This bill provides a tax "rebate" check, the amount of which goes down for those who make 70,000 or more and if you make 95,000 you get ZERO.

This bill is bigger than the entire cost of both wars they have been blaming for damaging our economy and then some and the majority of it is a shopping spree for Democrats that will do nothing but hurt us, our economy, our retirement, our children's futures and education.

But, for those Obama supporters in here, not to worry, no matter how bad he screws us up, he and buddy Rom are going to "handle" the census so he can stay in office for more than 4 years.  Can't wait to see how they plan to do away with the two term limit on the Presidency. 

I will pay several thousand dollars in taxes this year and I would much rather have a choice so I could give it to a bank CEO rather than have to give it to this government so they can use it against me.

**I will pay several thousand dollars in taxes this year and I would much rather have a choice so I could give it to a bank CEO rather than have to give it to this government so they can use it against me.**

I consider a year we pay only several thousands of dollars in taxes a good year, compared to the years I paid tens of thousands of dollars in taxes because I was single, childless and had no real deductions and all my quarterly bonuses were taxed at 50% on top of the 27% I paid on my salary. But I like having roads to drive on, hospitals that have ER's open 24/7, police/fire departments available by simply dialing 911 and all those services that people seem to forget that our taxes pay for.

Have you ever been to another country? Drive out of town and the roads are dirt. When it rains, you just pull over until it stops because the roads are impassible. If you have a cavity the "dentist" pulls the tooth or you drive hundreds of miles to find one qualified to fill it. I'm so sick of people whining about paying taxes.

~I wonder how many jobs saving the March Mouse for N Pelosi will create?~

None, given that the mouse story is fantasy (which the Republican politicians would have realized had they read the bill they voted against).   

~Can't wait to see how they plan to do away with the two term limit on the Presidency.~

I'm not sure what you are talking about, sorry. 

~I will pay several thousand dollars in taxes this year and I would much rather have a choice so I could give it to a bank CEO rather than have to give it to this government... ~

I think probably there are quite a few Democrats who felt like that from time to time over the past 8 years.