GOP Opposes Pay Limits On Bailed-Out Bankers

 

Wall Street bankers, with their $18 billion in bonuses, private jets and gaudy conferences, are causing headaches for the GOP.

 

President Obama has proposed capping compensation for executives at banks that take taxpayer bailout money at $500,000. Republicans hate the idea -- a position puts them uncomfortably on the side of people currently about as popular as child-porn producers and subprime mortgage brokers.

 

Senate Minority Leader Jon Kyl (R-AZ) blamed the "tone deaf" bankers for creating the political environment that allows Obama to call for a cap.

 

"Because of their excesses, very bad things begin to happen, like the United States government telling a company what it can pay its employees. That's not a good thing in America," Kyl told the Huffington Post.

 

"What executives have done is troubling, but it's equally troubling to have government telling shareholders how much they can pay the executives," said Sen. Mel Martinez (R-FL).

 

So, if it's bad to tell a company what to pay its employee's.... shouldnt it be bad to enforce minimum wage? Isnt that "anti-capitalism? If a car manufacturer wants to pay children $1 an hour to build cars... why cant it? It's wrong to enforce pay requirements.

Edited February 6, 200917 yr by Athomeboy_2000

There's already a thread on the executive compensation proposal.

There's already a thread on the executive compensation proposal.

Yes there is. And now they are one in the same.

 

GOP Opposes Pay Limits On Bailed-Out Bankers

 

 

 

So, if it's bad to tell a company what to pay its employee's.... shouldnt it be bad to enforce minimum wage? Isnt that "anti-capitalism? If a car manufacturer wants to pay children $1 an hour to build cars... why cant it? It's wrong to enforce pay requirements.

 

There is a pretty significant number of people who believe that minimum wage actually does more harm to low income workers than good by artificially limiting the number of people who work.

There is a pretty significant number of people who believe that minimum wage actually does more harm to low income workers than good by artificially limiting the number of people who work.

I think the art of determining the minimum wage is balancing that, against unfair labor practices that create more poverty. You have to be careful not to go too far one way or the other.

 

Here is the fine print... This change is toothless.

 

http://www.bloomberg.com/apps/news?pid=was...id=azVLk.22AkLI

 

Goldman Sachs Group Inc., JPMorgan Chase & Co. and hundreds of financial institutions receiving federal aid aren’t likely to be affected by pay restrictions announced yesterday by President Barack Obama.

 

The rules, created in response to growing public anger about the record bonuses the financial industry doled out last year, will apply only to top executives at companies that need “exceptional” assistance in the future. The limits aren’t retroactive, meaning firms that have already taken government money won’t be subject to the restrictions unless they have to come back for more.

 

More at link.

Here is the fine print... This change is toothless.

 

http://www.bloomberg.com/apps/news?pid=was...id=azVLk.22AkLI

 

 

 

More at link.

So qwas GS confused or will they still pay back the loan?