First They Came....Power Grab

Annie

Diamond Member
Nov 22, 2003
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If they can do this, not the stockholders deciding to sell because of salaries, it's a matter of time:

Obama Wants Government Control On Bank Paychecks | Econwatch - CBS News

May 13, 2009 4:02 PM
Obama Wants Government Control On Bank Paychecks
Posted by Igor Kossov

In light of what he called in February a "reckless culture and a quarter-by-quarter mentality," President Obama’s administration indicated that it is looking for ways to create tighter controls over pay in the banking sector. The administration is seeking ways to make employee compensation mesh with performance, something that it believes hasn't been happening.

"We had a period where compensation practices just became completely unmoored from reality, defied gravity, and they created incentives for risk-taking that overwhelmed all the basic checks and balances in the system," Treasury Secretary Tim Geithner in an interview with Associated Press.

The administration is considering working through federal agencies such as the Federal Reserve or the Securities and Exchange Commission. The Fed, for example, could prohibit banks from giving bonuses for quantity rather than quality of loans made by banking loan officers.

The rules may also come through the legislature. Representative Barney Frank, a Massachusetts Democrat, is putting together a bill that would give the government stronger authority to audit and control incentives if they are judged to threaten the economy.

The proposed new rules are still in the planning stages, but they are already proving controversial. Top bankers are opposed to the idea, which many have called either unrealistic or potentially damaging to the banking sector. Without incentives, they argued, many top employees can leave for the wild west of hedge funds. Furthermore, they said, government micromanagement isn't how banking works.

In addition, critics point out that the new rules would target not only the paychecks of top banking executives but also many employees below them. They would also apply to all banks, not just those who have taken government bailout money.

Right now, however, banks are not in the best position to bargain their case.

"As long as they are general in nature and could be enforced on a case-by-case basis,” said Edward Yingling, chief executive of the American Bankers Association, according to the Wall Street Journal. “What would never work is detailed regulation of compensation."
 
Oh and about Barney:

Barney Frank: TARP's comp curbs could be extended to all businesses - Financial Week

Barney Frank: TARP's comp curbs could be extended to all businesses
Would be part of broader bill limiting hedge funds, credit-raters, and mortgage securitizers; 'deeply rooted anger'
By Neil Roland
February 3, 2009 ET

Congress will consider legislation to extend some of the curbs on executive pay that now apply only to those banks receiving federal assistance, House Financial Services Committee Chairman Barney Frank said.

“There’s deeply rooted anger on the part of the average American,” the Massachusetts Democrat said at a Washington news conference today.

He said the compensation restrictions would apply to all financial institutions and might be extended to include all U.S. companies.

The provision will be part of a broader package that would likely give the Federal Reserve the authority to monitor systemic risk in the economy and to shut down financial institutions that face too much exposure, Mr. Frank said.

Also included in the legislation: registration requirements for hedge funds and proposals aimed at curbing conflicts of interest at credit-rating agencies such as Standard & Poor’s.

The bill, which the committee is working on in consultation with the Obama administration, also will require financial institutions that bundle mortgages into securities to share in potential losses. This would give banks and mortgage-specialists an incentive not to make bad loans, he said. Institutions that securitize loans improperly will incur tougher penalties.
...
 
History repeats itself for those who do not learn the lessons of it. This Obama menstruation is mirroring Jimmy Carter's perfectly, over-reaching and drunk with absolute power. They are incapable of controlling their urge to control. And clearly either they're not students of history or, they simply blame others for what happened post-Carter.
 
If they can do this, not the stockholders deciding to sell because of salaries, it's a matter of time:

Obama Wants Government Control On Bank Paychecks | Econwatch - CBS News

May 13, 2009 4:02 PM
Obama Wants Government Control On Bank Paychecks
Posted by Igor Kossov

In light of what he called in February a "reckless culture and a quarter-by-quarter mentality," President Obama’s administration indicated that it is looking for ways to create tighter controls over pay in the banking sector. The administration is seeking ways to make employee compensation mesh with performance, something that it believes hasn't been happening.

"We had a period where compensation practices just became completely unmoored from reality, defied gravity, and they created incentives for risk-taking that overwhelmed all the basic checks and balances in the system," Treasury Secretary Tim Geithner in an interview with Associated Press.

The administration is considering working through federal agencies such as the Federal Reserve or the Securities and Exchange Commission. The Fed, for example, could prohibit banks from giving bonuses for quantity rather than quality of loans made by banking loan officers.

The rules may also come through the legislature. Representative Barney Frank, a Massachusetts Democrat, is putting together a bill that would give the government stronger authority to audit and control incentives if they are judged to threaten the economy.

The proposed new rules are still in the planning stages, but they are already proving controversial. Top bankers are opposed to the idea, which many have called either unrealistic or potentially damaging to the banking sector. Without incentives, they argued, many top employees can leave for the wild west of hedge funds. Furthermore, they said, government micromanagement isn't how banking works.

In addition, critics point out that the new rules would target not only the paychecks of top banking executives but also many employees below them. They would also apply to all banks, not just those who have taken government bailout money.

Right now, however, banks are not in the best position to bargain their case.

"As long as they are general in nature and could be enforced on a case-by-case basis,” said Edward Yingling, chief executive of the American Bankers Association, according to the Wall Street Journal. “What would never work is detailed regulation of compensation."



Obama's power grab is beginning to look slightly familiar. I wonder what was really inside the book that Chavez gave him. Instructions on how to become a dictator in ten easy steps perhaps?

"In recent weeks, he ordered the nationalization of the foreign-owned cement industry and the country’s biggest steel company. He also nationalized one of Venezuela’s biggest milk producers, its largest cold storage and distribution company and several sugar plantations.

It is hard to know whether Mr. Chávez will get the full political bang that he is seeking. His popularity has fallen steadily since December when voters rejected his proposed constitutional reform that would have allowed him to stand indefinitely for re-election. If nothing else, the nationalizations will allow his government to use cheap milk and cement to bolster his support among Venezuela’s poor."


http://www.nytimes.com/2008/04/24/opinion/24thu3.html?ref=opinion
 
History repeats itself for those who do not learn the lessons of it. This Obama menstruation is mirroring Jimmy Carter's perfectly, over-reaching and drunk with absolute power. They are incapable of controlling their urge to control. And clearly either they're not students of history or, they simply blame others for what happened post-Carter.
yeah, amazing how some of us knew it would be Carter 2.0
 
History repeats itself for those who do not learn the lessons of it. This Obama menstruation is mirroring Jimmy Carter's perfectly, over-reaching and drunk with absolute power. They are incapable of controlling their urge to control. And clearly either they're not students of history or, they simply blame others for what happened post-Carter.
yeah, amazing how some of us knew it would be Carter 2.0

This is worse by powers of magnitude.
Now the politicos have learned of and are taking advantave of the basic ignorance of a whole new generation of Americans about the way their government works; enabled by the MSM, and a failed educational system induced by the NEA, no questions are asked as Americans lives are being potentially turned upside down.

.
 
Total right wing slop.

If Bush had handed off a functioning economy, this wouldn't be happening.

Wonder if some folks on the upper right have wanted this type of crisis all along in order to do away with SS, medicare and caid, public education etc.?

Keep up your socialist drivel.:cuckoo:
 
Total right wing slop.

If Bush had handed off a functioning economy, this wouldn't be happening.

Wonder if some folks on the upper right have wanted this type of crisis all along in order to do away with SS, medicare and caid, public education etc.?

Keep up your socialist drivel.:cuckoo:

The economy was functioning, and in fact, still is functioning at the moment despite this power grab.

The only reason this is a "crisis" is because we live in a pampered society and have absolutely no idea what a real crisis is.
 
Total right wing slop.

If Bush had handed off a functioning economy, this wouldn't be happening.

Wonder if some folks on the upper right have wanted this type of crisis all along in order to do away with SS, medicare and caid, public education etc.?

Keep up your socialist drivel.:cuckoo:

The economy was functioning, and in fact, still is functioning at the moment despite this power grab.

The only reason this is a "crisis" is because we live in a pampered society and have absolutely no idea what a real crisis is.

Absolutely correct - we are a nation with almost no historical perspective.

We have become fat and weak - a whining collection of immiediate gratification robots who go from one 24 hour news/entertainment cycle to the next.

Obama is not saving anyone from a crisis, but he sure as hell is helping to create an actual one...
 
Total right wing slop.

If Bush had handed off a functioning economy, this wouldn't be happening.

Wonder if some folks on the upper right have wanted this type of crisis all along in order to do away with SS, medicare and caid, public education etc.?

Keep up your socialist drivel.:cuckoo:

The economy was functioning, and in fact, still is functioning at the moment despite this power grab.

The only reason this is a "crisis" is because we live in a pampered society and have absolutely no idea what a real crisis is.
shhh, dont wake ray up
remember, Bush broke everything, but Obama doing Bush times 4 is fixing things

:eusa_whistle:
 

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