Senate Threatens To Cap Wall Street Pay At $400,000

The Maverick from Missouri, Senator Claire McCaskill, is eager to capitalise on the bailouts-for-bonuses scandal by capping Wall Street pay at a horrifying $400,000 a year.

Bloomberg: Pay and bonuses for executives at companies receiving federal bailouts would be limited in total to the U.S. president’s $400,000 salary, and a court would be created to restrain their “massive self-indulgences,” under legislation introduced by two senators.

“We have a bunch of idiots on Wall Street that are kicking sand in the face of the American taxpayer” by taking multimillion-dollar bonuses, said Democratic Senator Claire McCaskill of Missouri. Her proposed $400,000 pay cap for executives would cover salary, bonuses and stock options.

Companies have continued to award multimillion-dollar bonuses after accepting funds from the $700 billion taxpayer bailout enacted by Congress last year. The Treasury Department has injected about $200 billion into banks across the country through its Troubled Asset Relief Program.

“The cash from our bailout is being used” to pay executives, said Senator Sheldon Whitehouse, a Rhode Island Democrat. “40 billion dollars in taxpayer dollars will end up in the pockets of the very executives who tanked the bailed-out firms.”

Whitehouse proposed a “temporary economic recovery oversight court” that would give the government the power to “take reasonable steps to restrain the massive self-indulgences that these masters of the universe have become accustomed to.”

See Also:
Merrill Bonuses: What’s Wrong With This Picture?

NYC Bankers Got $18.4 Billion In Bonuses

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.