Wednesday, May 13, 2009

The Continued Takeover of the Banking System by Obama

This may be the greatest step to date that the United States has ever taken towards socialism. President Obama wants to change the way bank executives are compensated--all bank executives not just those who took government bailout money.

WSJ reports:

The Obama administration has begun serious talks about how it can change compensation practices across the financial-services industry, including at companies that did not receive federal bailout money, according to people familiar with the matter.

The initiative, which is in its early stages, is part of an ambitious and likely controversial effort to broadly address the way financial companies pay employees and executives, including an attempt to more closely align pay with long-term performance.

Administration and regulatory officials are looking at various options, including using the Federal Reserve's supervisory powers, the power of the Securities and Exchange Commission and moral suasion. Officials are also looking at what could be done legislatively.

Among ideas being discussed are Fed rules that would curb banks' ability to pay employees in a way that would threaten the "safety and soundness" of the bank -- such as paying loan officers for the volume of business they do, not the quality. The administration is also discussing issuing "best practices" to guide firms in structuring pay.
"Quality" loans and "best practices" are code words for getting money into the hands of Obama's favored groups.

Bottom line: An attempt is being made to takeover the American banking system by the President of the Unted States.

Where is the outrage?

1 comment:

  1. Where is the outrage, indeed? People don't notice- they are looking at Mr. Obama's perfectly crafted presentations and feeling "better" about themselves and the economy. On that note- Someone did a survey 15 or so years ago about how people watch TV. It turns out that if you watched TV on a screen less than 20" then you listened to what the person on the screen was saying. If you viewed on 20" or over you didn't listen to what they said, you were influenced by how they looked and presented themselves. I know this is a follow on to the Kennedy/Nixon debate in the 1960 presidential election but it still applies.

    How many people do you know with television sets that have screens less than 20"?

    And if that argument doesn't satisfy you then think of all of the demonization of bankers that has happened in the media since the movie "Trading Places" hit theatres. Most recently: The WaMu TV adds, the AIG bonus attacks this winter,etc.
    Bashing bankers and their money is a pervasive cultural attitude in this country.