END THE FED! Ben Bernanke now going after banks NOT covered by TARP

WASHINGTON - JANUARY 17: Federal Reserve Board Chairman Ben Bernanke wipes his eyes during a hearing before the House Budget Committee January 17, 2008 on Capitol Hill in Washington, DC. Bernanke was on the Hill to give his views on the outlook of U.S. economy and he said the economy has been growing slow. (Photo by Alex Wong/Getty Images)I’m probably in the minority on the right that thinking that the capping of salaries of executives of institutions that took TARP money should be able to be capped. You get in bed with the government, you pay the price. I also understand the other side, that with these “capped” salaries, there is no way you are going to get the best, hardest working, qualified people to work for these firms. GM not being able to find a CFO right now is a perfect example. However, anything that would go beyond these government controlled companies is off limits as far as I’m corcerned. Apparently. Federal Reserve, Chairman Ben Bernanke doesn’t see it that way as he is now looking to go after employee compensation of ALL banks, including those who never took a bailout according to the Washington Post:

“There is entirely too much reliance on cash, and there’s got to be a better way to tie corporate performance to long-term growth,” Feinberg said at a media briefing. “I’m hoping that the methodology we developed to determine compensation for these individuals might be voluntarily adopted elsewhere.”

At the Federal Reserve, Chairman Ben S. Bernanke proposed a broader but less proscribed plan to restrict pay at banks. The aim is to prevent them from rewarding employees for actions that could endanger the firms’ long-term financial health. Unlike Feinberg’s more limited plan, the Fed’s guidance would cover all banks it regulates — even those that never received a bailout — as well as U.S. subsidiaries of foreign companies.

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October 25, 2009 · Filed Under Ben Bernanke, Federal Reserve


Comments

  • Rick

    I think we should just stop the lending of tax payer obligations all together to shareholder owned banks, there is no reason we should let them borrow our obligation and have them lend it to us at a higher rate.

    We should not only end the fed but we should reestablish the Bank of the United States where citizens can barrow funds directly, as much as it might seem like socialism its not, its just removing the bogus middle management layer of banks.