US set for ‘big bang’ financial clean-up (FT)

[katty]

more: http://www.ft.com/cms/s/0/15f37800-ef05-11dd-bbb5-0000779fd2ac.html

US set for ‘big bang’ financial clean-up
By Krishna Guha in Washington

Published: January 30 2009 23:31 | Last updated: January 31 2009 00:19

The Obama administration is gearing up for a “big bang” announcement next week that will combine a bank clean-up with measures to reduce home foreclosures and probably steps to kick-start credit markets.

The plan will involve an overhaul of the troubled asset relief programme – the $700bn bail-out fund – including strict curbs on compensation at banks receiving public aid. The Tarp overhaul is intended to restore public confidence in what is a deeply unpopular programme and ensure that taxpayer money is not used to fund excessive pay, bonuses and dividends to shareholders.

“There will definitely be a cap of some sort on bonuses,” said a Wall Street executive who has taken part in talks with the authorities. “The political climate is such that there is a need to punish Wall Street.”

[Warpy]

1. They need to cap executive pay

as a multiple of the lowest wage in the company, also. We've got to give some sort of disincentive to the rabid greed we've seen over the last 28 years and it doesn't seem that a progressive tax structure is in the works.

In any case, I hope the thieves are flattened and don't know what hit them.

[Seldona]

2. K&R

Damn real leadership feels good. No one is perfect, but I am feeling better and better about things every day. Now if we can address the issue of these two idiotic wars we are fighting we are a long way toward undoing the damage repubs, under *Bush, left in their wake.

[jkshaw]

3. “The political climate is such that there is a need

to punish Wall Street." This is a bank executive talking? PUNISH Wall Street? By putting a cap on executives' outrageous pay? What thick-headed delusional mercenary idiots these people are.