Obama shocked at the CEO Bonuses

http://www.nytimes.com/2009/01/30/business/30obama.html?_r=1&th&emc=th

Can you imagine these buggers begging for company money and using it to pay bonuses to the top brass.

We pay for this in taxes.

It is indeed shocking while the nation is in economic crisis. But how do you restrict it? I think more shocking news like this will be coming in the months to come.

On the other hand, will Obama administration kill wall street in the end? Just wondering.

You restrict it by making any and all bailout money contingent on restrictions. You do NOT just hand over a chunk of cash and tell them to go to town!

I presume there is a cut for each company to get the bailout. What they should do is just say, here is your bailout money less the bonus you received.

I am not sure this goes far enough. I think that what this demonstrates is the complete lack of understanding of the current reality. Remember this story - http://www.luxist.com/2008/10/07/aig-partied-at-the-st-regis-monarch-beach/ While I do not want Washington to tell those company who should be running them, I feel strongly that as long as it is the same people up top, nothing will change. And it seems that even when they do change leadership, it's from the same old club that just doesn't get it.

Mind you, I don't want to see socialism here; if those companies don't take the public money, they can do anything they want - I don't care. But they must understand that if they take the money, then they must change their whole attitude. Period.

How could Obama not know about CEO bonuses? This is public knowledge.

I expect more from the "smartest man in the world"!

What I'm truly shocked about is his ignorance.

Dizzy

dizzydi7 said:

How could Obama not know about CEO bonuses? This is public knowledge.

I expect more from the "smartest man in the world"!

What I'm truly shocked about is his ignorance.

Dizzy

Click to expand...

If you read the story, you would know that Joe's subject line is mistaken. The president never said he was"shocked" or hadn't a clue that CEOs got big bonuses. He and the vice president said they were outraged, disgusted, and similar language. No surprise involved.

If you paid attention even occasionally during the campaign, you'd know that Obama slammed excessive compensation repeatedly. Obviously he is not ignorant of its existence.

As to how to fix it, of course there should be restrictions going forward. I don't know about a clawback regulation. That smells like an ex post facto law to me. I happen to retain my fondness for the Constitution even if abiding by it does not produce the results I would prefer in a specific case.

I pretty much agree with Ptichka except that it is not socialism to regulate non-TARP corporations. In a market system where publicly traded companies literally reach into everything, they can bring down the entire world economy with them when they fall. Even without TARP funds, corporations are not using their own money. They are using other people's money.

If I as an individual commit fraud against another person or a business, I can go to prison if caught. Corporations enjoy the legal rights of individuals so they should accept the responsibilities as well.

Susan