Pay Czar's Reforms May Not Restrict Wall Street Pay, Overall Pay Likely WON'T Fall

bloomberg.com:

Corporate governance and compensation experts say new rules will mostly help eliminate plans like those that tied bonuses to the number of subprime mortgage bonds created, for example, or rewarded trades that later turned sour. The guidelines endorsed by U.S. President Barack Obama and the rest of the Group of 20 nations aim to discourage excessive risk taking by employees in the financial industry.

Read the whole story: bloomberg.com

Comments

[StockMarkets]

No more bailouts. No more too big to fail. more effort needs to be done to make work. Instead, unemployment keeps climbing as well as the deficit. Tax cuts and toehr stupid gimmicks aren't the answer.

hat tip to http://financeopinionss.blogspot.com

[mcmutter]

Why be a thief and risk prison, just become a banker and enjoy the free ride with no risk....

[Carl Caroli]

We don't need a pay czar. We need to bust up corporations that have become so big that there is, for all intent and purposes, no competition in their field. Having 2 or three companies dominating anything, be it banking, insurance, energy, pharmaceuticals, whatever, is not competitive. If there at least a double digit number of companies competing in every field, costs and salaries would in no way get so extreme that we'd need a pay czar. Regulators are not the answer, limitation is.

[S E Martin]

FDR argued for salary caps on CEO's, but Congress would not pass it.

Post Great Depression, FDR attempted to put protections in place to guard against this unchecked corporatism and greed. When the sky's the limit on profits, I think we have seen the results of how dangerous a few greedy men can be trying to one-up each other, maybe trying to see who can be the first "trillionaire."

Capitalism is fine, if it involves play fair. This most recent mess was a complete abuse of "capitalism."

After the first Great Depression, which was caused by a very similar set of circumstances, many Americans were ready and willing to accept regulations, including executive pay caps.

[mcmutter]

that was why we had 90% tax rates on outrageous incomes....we need to start collecting FICA taxes on incomes over $250k up to $100 mil @6.5% in order to put some equality back into the system

[calfacon]

Of course they won't face cuts to their take home. That's so lower class! Not for them. 'scuse me I may have to go puke.

[RustyPatina]

Then could we have some mutual funds made up of responsible companies that pay reasonable salaries and bonuses to upper management? I'm tired of having my profits go to these bozos.

[BlueSkyPilot]

Pay as much as you want. Taxed at 90%.
No more loopholes, shelters or shell games.
Same thing for corporate profits. You want to make money. Sell a good product.

[The Professor]

If the govt got voting stock for it's "investment" then the govt has every right to vote it 's stock the way it sees fit. If it got concessions from the directors, then it can enforce those concessions. But if didn't get either, then ignore Kenneth Feinberg. Only the board can set executive compensation.

[ResidualSelfImage]

50% tax on one million or more income.

Obama is lying about middle class tax cuts.

http://www.youtube.com/watch?v=F8LPNRI_6T8

[S E Martin]

Propaganda. This video is just a hack job of clips interspliced as seen fit by the editor. It's just a bunch of political opinion commentary, mostly from Fox News, and of comments Obama said taken comletely out of context, naturally.

Look, I think we get that some serious change needs to take place, but this is not just Obama's problem. This problem has been with us for decades, even centuries. Obama did not cause it, and I suspect he's only thus far continued it because to go against it, for now, would mean a complete economic collapse, leaving all of us unemployed.

Are you suggesting a tax hike to 50% on incomes over one million? That would make you quite "liberal" on taxation.

I'm not sure about the tax cuts. I don't think Obama said he'd cut middle class taxes; I recall him saying that he would not RAISE taxes on the middle class.

[S E Martin]

I should clarify: I only watched the first 10 minutes of this. I will watch the rest at some other time.

I'm not saying it's all inaccurate, but, again, this isn't about only Obama.

[S E Martin]

Some of my comments here are not getting through....

Ok, I'll try again:

This "documentary" is really sending mixed messages, but I'll point out one thing:

So far, a key "argument" of this is that corporations should be extremely tightly restricted (in this, they guy--it doesn't give names or credentials!-- says that corporations would only be granted limited charters that would expire, and ONLY if those corporations serve the public good, as deemed by Congress.

So, are you in favor of that?

Or are you just posting this video because you thought it was anti-Obama?? (Much of it after the first few minutes, is not really anti-Obama; it's anti-corporatism, and if anything argues for strict regulations, which, again, progressives are FOR, and conservatives are AGAINST, right?)

[AllShookUp]

And we wonder why people are running amok in this country? One more bailout will signal a revolt I don't think we've ever seen before, but is long overdue if you ask me. Just a matter of time.

[satanlite]

LOL! If anyone ever thought a rule or regulation could stop massive over compensation at the Wall Street level you must be living on the moon. "They" will always find a way to rig the compensation system in their favor. We havea culture of greed and it won't change in our life times. There is no cure.

When anyone is paid millions it sets a standard for wealth and is NOT going to get rolled back. Ever. The only thing we can do is try to lift up the wages and salaries of working people so they can enjoy the benefits they deserve. Mainly that means pay the bills, pay for education if so desired, pay for any doctor bills that may pop up, and be able to save for a comfortable retirement. The rich are so intent at sucking out ever last drop of blood from the American middle class they'll never stop until we do an end-around tactic (like they do) to protect the average US citizen from predation. Currently the gov is the only way that could be done. They need to enact legislation aimed at helping main street, not at attacking Wall STreet (since that tactic - as emotionally satisfing as it is - is very clearly totally ineffective).

[ejhickey]

Ken Feinberg is a dork

[iridium53]

Satisfaction = expectations - perception.

Wow, hard to envision an admistration that screws up this much, this often.

[Furby2]

boycott big banks, easy peezy.

[maxhardon]

Did you really expect anybody to take a pay cut just because there is a gov't pay czar running around. When you own Congress you can do whatever you want, take whatever money you want and tell the Treasury to give you more.

[willt7311]

And the presidency as well.