Far exceeding the boundaries of just TARP recipients, the U.S. Treasury and the Federal Reserve have unveiled a set of curbs and rules for executive compensation at U.S. banks.
The Fed is proposing that it more aggressively regulate compensation practices at banks under its control, including thousands of U.S. banks as well as the American subsidiaries of overseas firms.
If this proposal passes, you will have the entire banking system of the U.S. under the thumb of government political operatives. Want a raise? Toe the line, baby. Make loans where they say, and only those loans, or your next government pay review is going to be a bitch.
Bankers will become puppets of the state.
Health and money,this Obama kid sure knows how to do a coup.
Goldman Sachs and JP Morgan control obama do you really think they will be under his control?
ReplyDeleteWe know Obama will take care of his buddies.
ReplyDeleteI love the gov't. They know they'll be struggling to get good executives if they limit pay, so they decide they will limit the pay of all. Bring everyone down to the lowest common denominator. Can't wait to see what health care looks like.
ProudProfiteer
My favorite part is how they are going to somehow factor in "risk" as to whether you are worthy of a raise/bonus or not....this is perhaps one of the most unfortunate pieces of collateral damage......risk is inherent to economic growth....."mr. smith, you have an amazing business plan here that will revolutionize the car industry, unfortunately.....[fill in the blank]"
ReplyDeleteNow the word "risk" is rally cry for idiots who don't understand simple economics.
I agree with Lori - Goldman and other investment bankers like Goldman are relatively unregulated and thru their fund raising have some control over pols. Notice how quickly Goldman backed away from their brief commercial bank holding company status. In addition I don't think they took any TARP money directly.
ReplyDeleteCommercial bankers however have always been "puppets of the state." This pay curb is for show. Ultimately the enrichment of the new puppets won't be significantly reduced.