Senator Claire McCaskill suggested a salary cap at Mr. Obama's $400,000 salary and other than the amount, Pres. Obama issued an executive order based on her suggestion for new legislation. She said "these people are idiots" saying they cannot "kick sand in the face of taxpayers" as she discussed the $18 billion bonuses of 2008. Mr. Biden said that he wanted to throw those executives in prison.
Rep. Barney Frank (D-MA) also summoned several executives from the top banks to appear before his comittee.
Some executives believe this is unfair (obviously). But the order only applies to banks who take in bailout money after today. The U.S. Gov't has every right to protect it's taxpayers by attaching very short strings to it's bailout money.
Jon Stewart put it better than anyone...when rich executives claimed that they give high bonuses because they can't afford to lose their best. Jon Stewart said, "YOU DON'T HAVE ANY BEST!"
And there's more. Sen. Olympia Snowe (R-ME) and Sen. Ron Wyden (D-OR) equipped with a legal brief arguing its legaility have proposed an amendment that would apply not only to the future but to the past as well. Under their amendment, all excessive bonuses paid in full or in part by TARP money would be recalled to the treasury in a timely manner. Excessive means $100,000 or more and timely means within 120 days. The alternative is a 35% fine they call an "excise tax". Wyden said, "it's not enough to say these bonuses are wrong...they've got to be paid back."
The President and these two Senators have clearly departed from the irrepsonsible TARP abuse under Secretary Paulson. Not only will the treasury be protected from this irresponsibility in 2009, it will get back it's money from 2008. Another note, according to Wyden, most of these businesses have not paid their taxes for 2008. He also said that he believes that the Snowe-Wyden amendment would incrase consumer confidence at a time when people are afraid to buy houses, the biggest part of the problem.
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