Saturday, March 21, 2009

Maximum Wage Crusade, War On Wall Street Continues; Obama To Set Pay Limits

The Maximum Wage crusade is in full swing.

I have no problem with setting stipulations on companies who receive government aid moving forward.

But this plan calls for Big Brother-style Government to regulate all banks, investment firms and possibly other companies!

Legislation such as the law passed last week in Congress to tax AIG bonuses is unconstitutional. and violates every free-market economic principal!

It's hard to imagine that a government who will run a $10 Trillion deficit over the next ten years will help Wall Street.

Further, Obama has detested Wall Street since the early 80s when his first job out of college was on Wall Street. In his memoir, "Dreams of My Father", Obama writes:

Eventually a consulting house to multinational corporations agreed to hire me as a research assistant. Like a spy behind enemy lines, I arrived every day at my mid-Manhattan office and sat at my computer terminal, checking the Reuters machine that blinked bright emerald messages from across the globe. As far as I could tell I was the only black man in the company, a source of shame for me but a source of considerable pride for the company’s secretarial pool.

I'm not entirely sure what the motivation is for Obama's war on investors, but it seems increasingly real.

It is unfair and unconstitutional for the White House and Congress to attempt to regulate a private company's payroll. It's ridiculous. The Government cannot tell a board of director's how to draw-up a compensation contract.

Government regulation and rules are what got us into this mess and adding stricter control is dangerous.

The fury and outrage over the AIG bonuses is not originating from Main Street -- it is a calculated Alinsky-esque political ploy created in Washington.

And it is shameful that Obama is using the AIG bonus scandal and other efforts to demonize Wall Street.

But what else should be expected from a Socialist with Communist leanings.

The NY Times reports:

WASHINGTON — The Obama administration will call for increased oversight of executive pay at all banks, Wall Street firms and possibly other companies as part of a sweeping plan to overhaul financial regulation, government officials said.

The outlines of the plan are expected to be unveiled this week in preparation for President Obama’s first foreign summit meeting in early April.

Increasing oversight of executive pay has been under consideration for some time, but the decision was made in recent days as public fury over bonuses has spilled into the regulatory effort.

The officials said that the administration was still debating the details of its plan, including how broadly it should be applied and how far it could range beyond simple reporting requirements. Depending on the outcome of the discussions, the administration could seek to put the changes into effect through regulations rather than through legislation.

One proposal could impose greater requirements on the boards of companies to tie executive compensation more closely to corporate performance and to take other steps to assure that outsize bonuses are not paid before meeting financial goals.

The new rules will cover all financial institutions, including those not now covered by any pay rules because they are not receiving federal bailout money. Officials say the rules could also be applied more broadly to publicly traded companies, which already report about some executive pay practices to the Securities and Exchange Commission. Last month, as part of the stimulus package, Congress barred top executives at large banks getting rescue money from receiving bonuses exceeding one-third of their annual pay.

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