Color Me Shocked
Posted by Texas Betsy in Economic News, News, Relaxed Politics, US News, US Politics
OK, maybe not.
Limits on Executive Pay May Prove Toothless
Congress wanted to guarantee that the $700 billion financial bailout would limit the eye-popping pay of Wall Street executives, so lawmakers included a mechanism for reviewing executive compensation and penalizing firms that break the rules.
But at the last minute, the Bush administration insisted on a one-sentence change to the provision, congressional aides said. The change stipulated that the penalty would apply only to firms that received bailout funds by selling troubled assets to the government in an auction, which was the way the Treasury Department had said it planned to use the money.
Now, however, the small change looks more like a giant loophole, according to lawmakers and legal experts.
A loophole that favors corporate execs? A loophole inserted by the Bush mal-admin? REALLY?!?
In a reversal, the Bush administration has not used auctions for any of the $335 billion committed so far from the rescue package, nor does it plan to use them in the future. Lawmakers and legal experts say the change has effectively repealed the only enforcement mechanism in the law dealing with lavish pay for top executives.
“The flimsy executive-compensation restrictions in the original bill are now all but gone,” said Sen. Charles E. Grassley (Iowa), ranking Republican on of the Senate Finance Committee.
So where are the loopholes that help the average American? Oh right.
Tags: George Bush, Wall Street Bailout
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EPU’d from below — courtesy msmolly:
Google Wants Its Own Fast Track on the Web
If Congress wants to fix this, it can.
Meanwhile, what passes for winter here in SoCal has officially arrived. Homeowners in fire-damaged areas spent yesterday sandbagging to protect their properties against enhanced runoff, which is fine unless the “enhanced runoff” takes the form of a mud-slide. Raining steadily and briskly right now. Temperature is unlikely to go above 60 for at least the next two days, perhaps longer. Mammoth Mountain, a ski resort in the Eastern Sierras about five hours north of here, is reporting 18 inches of new snow in the last 24 hours, so the good news is that some of the precip is falling in areas where it can have a positive impact on next year’s water supply.
Morning bumz. We had summer yesterday. Back to cold today, with occasional storms. Blech!
Forecast for my folks in NJ is warmer.
Forecast for the beach house looks significantly warmer and more inviting.
Temps bouncing around like a yo-yo here, too. Teens for a couple days, now about 50°.
Forecast says it should settle down and look more like a “normal” winter starting on Weds. But that may just be the meteorologists hallucinating order onto chaos.
Mort Zuckerman (US News & World Report, NY Daily News, and real-estate mogul) is among those conned by Madoff. This could get positively schadenfreudelicious.
Gordon, as for Madoff who made off with the money, it seems one had to be invited to be an investor. It was a major status symbol.
Some status.
Back to on-topic. Congress not only can but probably will fix this along with a lot of other loopholes.
This came across my desk this morning concerning Madoff:
“As scary as initial reports are for those still invested with Madoff, early investors may be on the hook to pay back old profits and redemptions to help cover losses for everyone possibly bilked by the scam, as allowed under the type of prosecution of a Ponzi-type fraud.
And victims may be limited in how much they can tap the Securities Investor Protection Corp., which doesn’t cover market losses and has a $500,000 ceiling on client accounts, meager solace for those who were into Madoff Investment Securities for many millions and even billions.”
I was so infuriated by this I couldn’t finish reading the article. But, at least it WAS on the front page.
And now, some comedy relief as reported by CNN:
“Sen. John McCain said Sunday he would not necessarily support his former running mate if she chose to run for president.
Speaking to ABC’s “This Week,” McCain was asked whether Alaska Gov. Sarah Palin could count on his support.
“I can’t say something like that. We’ve got some great other young governors. I think you’re going to see the governors assume a greater leadership role in our Republican Party,” he said.”
Still — the REAL question is: would he serve as her running mate? And if so — would he BLINK first??
Thank goodness we’re getting a new congress. Hope they’re better than the last one.
Obama and the glass cliff
I’m Still Not Buying A Pontiac
We are getting torrents of rain, flash flood and mudslide warnings.
Not to mention, just driving in CA in the rain is taking your life in your hands
I am off to work etc. There’s a 4pm post in the queue and I may add one before that if this one gets bogged down.
@peanutbutter at 11:18 am -
ack! good luck with all that. let us know if we should be fed-exing an ark.
@muffin betsy at 11:27 am – Forutnately I am only threatened with rain (and CA drivers); the mudslide threat is by areas that burned. it’s a typical hazard of recently burned areas that they turn into mudslides on the next rain since the root system, etc, holding it in place is gone.
This seems to me such the sensible thing to do:
GSEs to Let Renters Stay after Foreclosure
Keeps the revenue stream up and keeps the house in better condition than being boarded up and vacant, I’d think…
more new shared items.
new post upstairs http://www.relaxedpolitics.com/?p=6342