House Votes To Restrict Wall Street Pay

[The Illusion]

WASHINGTON (AP) -- The House voted Friday to slap restrictions on how Wall Street executives are paid after nine banks that took government bailout money rewarded thousands of their employees with bonuses topping $1 million each.

Bowing to populist anger and defying President Barack Obama's suggestion that government rely on incentives instead of intervention to curb excessive salaries and bonuses, the House passed the bill on a 237-185 vote.

"This is not the government taking over the corporate sector. . . . It is a statement by the American people that it is time for us to straighten up the ship," said Rep. Melvin Watt, D-N.C.

Although the bill doesn't give Obama exactly what he wanted, it advances the first piece of his broader proposal to increase oversight of financial institutions. The Senate was expected to take up the package after Congress returns in September from its summer recess.

Read more at: AllAroundPhilly

 

[xsited1]

House Votes To Restrict Wall Street Pay

Liberal fascism at its finest.

 

[Kevin_Kennedy]

The federal government doesn't have the authority to restrict pay.

 

[The Illusion]

The federal government doesn't have the authority to restrict pay.

Thats what made me so mad about it.........

Jamie

 

[Immanuel]

The federal government doesn't have the authority to restrict pay.

Since when has that stopped them from doing something like this?

And hell, if they can't stop it then they will simply come of with some BS tax that will take it away from the execs anyway.

Immie

 

[Kevin_Kennedy]

The federal government doesn't have the authority to restrict pay.

Since when has that stopped them from doing something like this?

And hell, if they can't stop it then they will simply come of with some BS tax that will take it away from the execs anyway.

Immie

Well they didn't have the authority to bail out these companies in the first place, so the answer to your question is never.

 

[Fatality]

well they can tell the feds to fuck off or they can grovel at their feet. i give you one choice as to which it will be and it wont be telling them to fuck off. they made their bed by taking the money now they are getting boned in that bed by the fucktards they dealt with.

 

[Oddball]

Pure, unadulterated fascism.

 

[Big Black Dog]

I don't know if giving the money to all the Wall Street bozos is such a bad thing or not... I think I would rather give it to somebody that can have a good time with it rather than to use it to build tunnels so turtles can cross the road without getting run over.

 

[RetiredGySgt]

The federal government doesn't have the authority to restrict pay.

Sure it does, just ask Jillian she will explain to you how the words "the general welfare" actually give the Federal Government unlimited powers contrary to everything EVER written about the Constitution and its powers by the men that WROTE it.

 

[Xenophon]

Could these knuckleheads be any more rediculous?

 

[The Illusion]

They want to restrict these people but wont restrict welfare recipients. Thats the thing that gets me....

Jamie

 

[chanel]

The Obama administration plans to appoint a "Special Master for Compensation" to ensure that companies receiving federal bailout funds are abiding by executive-pay guidelines, according to people familiar with the matter.

The administration is expected to name Kenneth Feinberg, who oversaw the federal government's compensation fund for victims of the Sept. 11, 2001, terrorist attacks, to act as a pay czar for the Treasury Department, these people said.

White House Set to Appoint a Pay Czar - WSJ.com

"Special Master of Compensation"? "Pay Czar"? Doesn't that title alone scare the bejesus out of people?

 

[Old Rocks]

LOL. We, the taxpayer bailed the parasites out, we can damned well determine their paycheck. It was not the man on the factory floor that created this debacle, it was these worthless parasites. Time for them to learn what the results of failure are.

You stupid Rushpublicans on this board would reward failure to anybody that was already rich, and punish those that are middle class for success. You, and your minions, are what has put this nation in the present condition it is in. When your incompetant was given the White House by the Supreme Court, this nation was in excellant shape. Ol' a'W'ol ignored the warnings concerning terrorism, and lowered taxes at the same time as he lied us into an unneccassary war. Now we are reaping the rewards of the idiocy that you cheered on, and trying to ameliorate the damage, and you are trying to inflict even more damage on this nation. Real patriots, you fellow.

 

[elvis]

LOL. We, the taxpayer bailed the parasites out, we can damned well determine their paycheck. It was not the man on the factory floor that created this debacle, it was these worthless parasites. Time for them to learn what the results of failure are.

You stupid Rushpublicans on this board would reward failure to anybody that was already rich, and punish those that are middle class for success. You, and your minions, are what has put this nation in the present condition it is in. When your incompetant was given the White House by the Supreme Court, this nation was in excellant shape. Ol' a'W'ol ignored the warnings concerning terrorism, and lowered taxes at the same time as he lied us into an unneccassary war. Now we are reaping the rewards of the idiocy that you cheered on, and trying to ameliorate the damage, and you are trying to inflict even more damage on this nation. Real patriots, you fellow.

Old Roxy Lewinsky chimes in.

 

[ozzmdj]

Another move by the Statist.

 

[The Illusion]

How and why did bonuses become part of the compensation package for higher executive officers?

Well it's all about unintended consequence of government regulation. Prior to 1993 officers pay in publicly traded corporations were tax deductible by the corporation as a cost of doing business. The Revenue Reconciliation Act of 1993 and IRS codifying rule 162(m) changed the amount deductible. The Act and Rule influences compensation by limiting the deductibility of salary expense to $1 million for each of these executives. Deductibility above that ceiling was permissible as long as the excess came in the form of performance-based compensation, whether cash bonuses or equity-based compensation like options.

So government regulation created the environment and need for bonuses.

Further another rule, double taxation of dividend, created non dividend stock which flushed the board room with excess money. If a company decides to pay out dividends, the earnings are taxed twice by the government because of the transfer of the money from the company to the shareholders. The first taxation occurs at the company's year-end when it must pay taxes on its earnings. The second taxation occurs when the shareholders receive the dividends, which come from the company's after-tax earnings. The shareholders pay taxes first as owners of a company that brings in earnings and then again as individuals, who must pay income taxes on their own personal dividend earnings.

So, stock holders not wanting to be taxed twice said "We'll forgo dividend, just reinvest the money, grow the company and we'll take the reward in higher stock value." This of course left all of the earnings or profit in the company board room, available for... ... wait for it...... higher bonuses.

Government regulation caused the bonus issue, only by leaving well enough alone will the problem be corrected. But, alas that won't happen, they (the gov.) will meddle more and create another larger problem.

Jamie

 

[EriktheRed]

Also from the article:

Aware of voter outrage about the bonuses, Republicans were reluctant in Friday's debate to push back, even though they voted overwhelmingly against the bill. They said severe restrictions should apply only to banks that accept government aid.

Well, here's one time I find myself agreeing with Republicans...

 

[EriktheRed]

LOL. We, the taxpayer bailed the parasites out, we can damned well determine their paycheck. It was not the man on the factory floor that created this debacle, it was these worthless parasites. Time for them to learn what the results of failure are.

I too think it's crap that even failing CEOs still tend to get huge bonuses and other golden parachutes, but this legislation appears to be aimed at more than just financial firms that take U.S. aid. A firm that didn't take bailout money shouldn't have to be subject to this.

 

[The Illusion]

LOL. We, the taxpayer bailed the parasites out, we can damned well determine their paycheck. It was not the man on the factory floor that created this debacle, it was these worthless parasites. Time for them to learn what the results of failure are.

I too think it's crap that even failing CEOs still tend to get huge bonuses and other golden parachutes, but this legislation appears to be aimed at more than just financial firms that take U.S. aid. A firm that didn't take bailout money shouldn't have to be subject to this.

You are right about that.

Jamie