Congress toughens exec limits
Güncelleme Tarihi:
AP
Oluşturulma Tarihi: Şubat 16, 2009 00:00
CHICAGO - U.S. President Barack Obama's economic team tried to keep Democratic allies negotiating the stimulus bill from limiting paychecks for bank executives at banks in need of a bailout. Treasury Secretary Timothy Geithner and economic aide Lawrence Summers failed.
Sen. Christopher Dodd, chairman of the Senate Banking, Housing and Urban Affairs Committee, inserted strict rules into the $787 billion stimulus package over the White House's objections. Dodd's limits on bankers' bonuses are significantly more aggressive than those sought by Obama or Geithner in recent days, with much fanfare.
Dodd, a Connecticut Democrat, said the restrictions - an executive making $1 million a year in salary could receive only $500,000 in bonus money, for example - are necessary if Obama plans to ask Congress for more money.
"It will never happen as long as the public perceives that there are people getting rich," Dodd said. "Save their pay or save capitalism."
That tone among Democrats flavored much of the discussion about how to write the stimulus bill, which the president could sign as early as today. Despite appeals from Geithner, Summers and White House officials, Democrats didn't budge, according to administration officials.
The administration's proposed restrictions applied only to banks that receive "exceptional federal assistance." It set a $500,000 cap on pay for top executives and limited bonuses or additional compensation to restricted stock that could only be claimed after the firm had paid the government back.
The stimulus bill, however, sets executive bonus limits on all banks that receive infusions from the government. The number of executives affected depends on the amount of government assistance they receive.
Dodd, a Connecticut Democrat, said the restrictions - an executive making $1 million a year in salary could receive only $500,000 in bonus money, for example - are necessary if Obama plans to ask Congress for more money.
"It will never happen as long as the public perceives that there are people getting rich," Dodd said. "Save their pay or save capitalism."
That tone among Democrats flavored much of the discussion about how to write the stimulus bill, which the president could sign as early as today. Despite appeals from Geithner, Summers and White House officials, Democrats didn't budge, according to administration officials.
The administration's proposed restrictions applied only to banks that receive "exceptional federal assistance." It set a $500,000 cap on pay for top executives and limited bonuses or additional compensation to restricted stock that could only be claimed after the firm had paid the government back.
The stimulus bill, however, sets executive bonus limits on all banks that receive infusions from the government. The number of executives affected depends on the amount of government assistance they receive.