Congress Limits Pay for Top Execs

(AP) President Barack Obama's economic team tried to keep Democratic allies negotiating the stimulus bill from limiting paychecks for bank executives at banks in need of a bailout. Treasury Secretary Timothy Geithner and economic aide Lawrence Summers failed.

Sen. Christopher Dodd, chairman of the Senate Banking, Housing and Urban Affairs Committee, inserted strict rules into the $787 billion economic stimulus package over the White House's objections. Dodd's limits on bankers' bonuses are significantly more aggressive than those sought by Mr. Obama or Geithner in recent days, with much fanfare.

Dodd, a Connecticut Democrat, said the restrictions - an executive making $1 million a year in salary could receive only $500,000 in bonus money, for example - are necessary if President Obama plans to ask Congress for more money to save the financial sector.

"It will never happen as long as the public perceives that there are people getting rich," Dodd said in an interview. "Save their pay or save capitalism."

That tone among Democrats flavored much of the discussion about how to write the stimulus bill, which the president could sign as early as Monday. Despite direct appeals from Geithner, Summers and White House officials, Democrats didn't budge, according to administration officials. - CBS News

I don't really think that these people have a clue of what they are doing. I agree that if the Government uses our Tax Dollars to Save a Company from failing then they need to limit the payouts to Executives. That is not what is happening here. I didn't quite understand it either until I did some checking.

The bailout for the Banks was not only to give money to banks that were failing. Money was infused into almost all Financial Institutions as a way to try and get credit flowing. Even banks that were financially sound were given money.

That is why the Treasury Secretary and the President were against what Congress was doing. Democrats didn't listen, not even to their own President. Now we will see how this plays out. Many Banks are saying that they will return the money quickly to avoid falling into this provision. NOW THAT WILL HELP THE ECONOMY!!!

Remember this was passed by DEMOCRATS with only 3 Republicans. 2010 is not that far away.