It's Not a Scarlet Letter if the Pay Czar Asks Nicely
The logic is baffling but it's not funny when the same two banks getting screwed with. Oh wait, make that one, what with Bank of America paid off and all.
The Obama administration on Friday issued new rules on how hundreds of mid-level executives can be compensated at firms that received the largest government infusions, saying it hoped other companies would voluntarily adopt similar measures.
Treasury's pay czar, Kenneth Feinberg, capped at $500,000 the annual cash salaries for most of the roughly 450 employees at four firms under his purview -- Citigroup, American International Group, General Motors and GMAC. He also outlined how restricted stock and bonuses should be doled out.
In an interview Friday, Feinberg said he hoped his ruling would impact pay practices at other firms on Wall Street and beyond.
"There are hundreds of banking and other institutions that I think will benefit from the approach that we're taking."
I have a better idea. Instead of putting the regulatory smack down on these pathetic losers, just pull the plug. Surely AIG has had time to contain its malaise, and if it is still too critical to the system to fail this long after it set the dominoes falling, our problems are bigger than just their bitchasses.