* pushed bailout loophole on executive pay

[babylonsister]

Executive Pay Limits May Prove Toothless
Loophole in Bailout Provision Leaves Enforcement in Doubt

By Amit R. Paley
Washington Post Staff Writer
Monday, December 15, 2008; Page A01


Congress wanted to guarantee that the $700 billion financial bailout would limit the eye-popping pay of Wall Street executives, so lawmakers included a mechanism for reviewing executive compensation and penalizing firms that break the rules.

But at the last minute, the Bush administration insisted on a one-sentence change to the provision, congressional aides said. The change stipulated that the penalty would apply only to firms that received bailout funds by selling troubled assets to the government in an auction, which was the way the Treasury Department had said it planned to use the money.

Now, however, the small change looks more like a giant loophole, according to lawmakers and legal experts. In a reversal, the Bush administration has not used auctions for any of the $335 billion committed so far from the rescue package, nor does it plan to use them in the future. Lawmakers and legal experts say the change has effectively repealed the only enforcement mechanism in the law dealing with lavish pay for top executives.

"The flimsy executive-compensation restrictions in the original bill are now all but gone," said Sen. Charles E. Grassley (Iowa), ranking Republican on of the Senate Finance Committee.

more...

http://www.washingtonpost.com/wp-dyn/content/article/2008/12/14/AR2008121402670.html?hpid=topnews

[natrat]

1. and still the dem whores frank,dodd,pelosi reid etc fell all over eachother to sign this

[babylonsister]

2. Not clear if they knew about this loophole, but yes, they caved. nt

[KharmaTrain]

3. Typical....Screw 'Em All...

Thank goodness this regime is in its final days...boooshie is saving himself a fate as bad, if not worse than Hoover. If Crashcart used the name, you know that's on their minds...and still they don't give a shit.

This bailout...and I'm not refering to the auto makers, but to the rich in general...boooshie knows that he can't totally trash thing, just set up for the worst to hit after he's gone. I wouldn't be surprised if this fukstick thinks that if people suffer more after he's gone that somehow we're gonna think better of him. :puke:

The shakeout is going on...hold on to what you can while you can...this economy is going down to levels none of us have ever experienced and those bonus' won't do any good when there's nothing to buy and no one working. Smooth move, geniuses.