Senior House Democrat wants to toughen Obama's new restrictions on Wall Street pay by banning salaries and bonuses that encourage what the government considers "inappropriate risk."
WASHINGTON -- A senior House Democrat wants to toughen President Barack Obama's new restrictions on Wall Street pay by banning salaries and bonuses that encourage what the government considers "inappropriate risk."
The proposal by Rep. Barney Frank, which will be considered Tuesday by the House Financial Services Committee, would give the government unprecedented power in how financial executives are rewarded.
Obama has shied away from such direct intervention, even as administration officials argued that excessive compensation in the private sector contributed to the financial crisis.
"If the risk pays off, you make money," Frank said at a National Press Club luncheon Monday. "And if the risk doesn't, you suffer no penalties. Heads you win, tails you break even. It's like selling lottery tickets that only cost you money if they pay off."
Earlier this month, the Obama administration sent Congress legislation that would give shareholders a nonbinding vote on executives' pay packages.
Maybe it is just me, but wasn't this guy and his committee part of the original problem with the housing depression? Who ever thought that our government would be imposing itself so deeply into the private sector? I still am waiting for the first 'stimulus' monies to reach the small business owners. Why don't we regulate Charlie Rangle, who still hasn't paid his tax bill for the income he received from his villa offshore. Isn't anyone watching what the left hand is doing?