First it was Barney Frank saying, no bonus, no way. Then it was The Waxman asking to take a looksie at the payroll. Now it’s the danergous duo–Pelosi and Reid–asking Paulson to make sure executives don’t get overly compensated.
Bloomberg: In a letter today, House Speaker Nancy Pelosi of California and Majority Leader Harry Reid of Nevada told Paulson that voters want the Treasury to be tougher about how much banking executives can earn in so-called “golden parachute” payments.
…”News reports have suggested that six major financial institutions participating in the program have plans to pay their executives billions of dollars,” Pelosi and Reid wrote in the letter. “Such reports understandably infuriate many Americans.”
They asked Paulson to consider further restrictions on severance payments from healthy institutions that take part in the equity purchase program. The Treasury plan currently imposes stricter golden-parachute limits on “systemically significant failing institutions” in the program, according to the letter.
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