Is there anyone with half a brain who didn’t see this coming before it happened?
The Bush administration overpaid tens of billions of dollars for stocks and other assets in its massive bailout last year of Wall Street banks and financial institutions, a new study by a government watchdog says.
The Congressional Oversight Panel, in a report released Friday, said last year’s overpayments amounted to a taxpayer-financed $78 billion subsidy of the firms.
No kidding! Who’d a’ thought?
Oh, but surely now that Barack Obama is president, such folly is a thing of the past!
The British example of what happens when the government caps executive pay suggests otherwise:
Banks dependent on taxpayer support are planning to rush out hundreds of millions of pounds in bonuses to senior bankers and traders before a threatened crackdown. As ministers prepared to curb excessive remuneration, it emerged that Barclays and Lloyds Banking Group were poised to follow Royal Bank of Scotland (RBS) by paying bonuses within weeks.
Paraphrasing the Ian Malcolm character in Jurassic Park, greed always finds a way. Besides, the president’s limit of $500,000 a year on pay for executives at companies taking government money only applies to companies that haven’t already dipped into the public till. So Bank of America, AIG, Citi, etc., are exempt.
In other words, the limit is for show and does nothing.