Executive pay cap could get axe in stimulus negotiations
How’s this for absurdity?
Citing unnamed Democratic officials, The Associated Press reports that there’s “pressure” on Congress to drop the executive pay limits for bailed-out banks as lawmakers reconcile the differences between the House and Senate stimulus bills.
The reason? It would cost taxpayers too much.
That’s right — the federal government has lent or guaranteed trillions to Wall Street firms, many of which remain reluctant to lend the cash, and Congress might drop the executive pay cap because the $10.8 billion it would cost in lost tax revenue over 10 years (as scored by the Congressional Budget Office) is too much.
So: No conditions on lending. No restrictions on executive pay. It looks more and more like The Onion got it right when it said this bailout cash is being dumped into a hole in New Mexico.