Officials "concerned that harsh limits" on executive pay could discourage firms from asking for aid

[Amerigo Vespucci]

A Multi-Pronged Bank Plan
Administration Finalizing Strategy, Probably Won't Toughen Pay Restrictions

http://www.washingtonpost.com/wp-dyn/content/article/2009/01/30/AR2009013003742.html?hpid=topnews

By David Cho
Washington Post Staff Writer
Saturday, January 31, 2009; Page D01

The Obama administration has finished drafting the central elements of its plan to rescue the financial markets and is gathering feedback from regulators and Wall Street executives, sources familiar with the matter said yesterday.

While some details need to be hammered out, the strategy is likely to be laid out publicly in about a week, the sources said.

In finalizing the plan, officials have made a policy decision that could dismay lawmakers. The administration is likely to refrain from imposing tougher restrictions on executive compensation at most firms receiving government aid but instead retain looser requirements initially included in the Treasury's $700 billion rescue program, a source familiar with the deliberations said. Officials are concerned that harsh limits could discourage some firms from asking for aid.

The administration envisions a range of initiatives to jump-start the consumer credit markets, provide aid to struggling homeowners, and motivate banks to increase lending. The plan will also offer banks more capital and buffer them against losses on portfolios of "toxic" assets, backed by failing mortgages and other troubled loans.

[merh]

1. LOL - then don't ask for it.

:rofl:

*poutyface* they want us to cut salaries, well to hell with them, we just won't ask for their help - we don't need them *poutyface*

:rofl:

[Gman]

2. If exec comp makes them hesitate to ask for aid

they don't need it.

[aquart]

3. Well, if they'd rather go down rich, let 'em go down.

This argument is as idiotic as the one justifying the bonuses as necessary for retention of key personnel in a RECESSION. Supposedly, the bonuses were based on profit AND THERE HAVEN'T BEEN ANY PROFITS, unless the bailout money is counted as profit in which case we need to stop that thinking immediately.

Protecting the mansions of executives should not be our goal.

[AnneD]

4. It's called FREE MARKET.....

it's been so long since folks saw a true free market in actio.

[w4rma]

5. Good! Let those that don't liquidate their own assets to pay for their too high salaries. (nt)

[Andy823]

6. Good!

It will show just how "greedy" these guys are, and how little they care about the country and the problems we are in, and only care about their own bank account! If they don't want to have restrictions set on them, let them go under!

[elleng]

7. I think its a silly argument,

and hope that President Obama rejects it as a reason NOT to demand something from the b******s who begged and THEN gave bonuses.

[Mari333]

8. tough shit for them, then. nt

[stray cat]

9. They they either don't need or don't deserve it - Easy

[Still Sensible]

10. Good

I don't see a problem here.

[sutz12]

11. Well, now, doesn't that just peg your irony meter?

:shrug:

[L0oniX]

12. Oh for fucks sake ...what a bunch of horse shit.

Wall street executives should be tar'd and feathered and then kicked out of this country, bunch of diaper wearing sociopaths.

[Coexist]

13. then they fail, and they are out of work and get no pay.

fine.

[Ian David]

14. And that would be bad because... ?? n/t

[MADem]

15. Yeah, because four hundred grand a year is right at the POVERTY level! nt

[TWiley]

16. 400k / yr .... or ..... minimum wage. Which is "harsh"?

how ever can they make ends meet on $200 per hour? poor things

[geckosfeet]

17. Pfffft. Fine. If the company is sinking the board of directors will ask for aid -

and they will fire who ever needs to be fired.

[pleah]

18. Awwww, don't that just break your heart?

:sarcasm:

[Wapsie B]

19. At the very least excutive pay should be tied to company performance

If the company does well reward them for a job well done. But this horseshit about getting golden parachutes when they run a company into the ground needs to stop.

[safeinOhio]

20. Tie it to CEO pay in Japan

Republicans have no problem making hourly auto workers pay even with those a the transplant factory. I think they approved the idea.