Bush created executive-pay loophole (in the $700 BILLION bail-out)

[DogPoundPup]

Source: Concord Monitor

Congress wanted to guarantee that the $700 billion financial bailout would limit the eye-popping pay of Wall Street executives, so lawmakers included a mechanism for reviewing executive compensation and penalizing firms that break the rules.

But at the last minute, the Bush administration insisted on a one-sentence change to the provision, congressional aides said. The change stipulated that the penalty would apply only to firms that received bailout funds by selling troubled assets to the government in an auction, which was the way the Treasury Department had said it planned to use the money.

Now, however, the small change looks more like a giant loophole, according to lawmakers and legal experts. In a reversal, the Bush administration has not used auctions for any of the $335 billion committed so far from the rescue package, nor does it plan to use them in the future. Lawmakers and legal experts say the change has effectively repealed the only enforcement mechanism in the law dealing with lavish pay for top executives.

"The flimsy executive-compensation restrictions in the original bill are now all but gone," said Sen. Charles Grassley, a Republican from Iowa and ranking member of the Senate Finance Committee.

Read more: http://www.concordmonitor.com/apps/pbcs.dll/article?AID=/20081215/NEWS03/812150306/1013

[BrklynLiberal]

1. I wish I could say I was shocked..but there is no doubt that BushCo always has, and will

continue to look out only for its own best interests and the interests of its big-monied supporters.

And they still can't commit to $14B to save all the job in the auto industry, as well as those dependent on it...

[Lost River Ledger]

24. Let's all mail a shoe to the White House for this one.....

[BrklynLiberal]

31. cool..... Hanging shoes from the rear-view mirror could take on a whole new meaning.

:rofl: :rofl:

[No Elephants]

40. Donating to Soles 4 Souls, Re-Use a Shoe, Share a Shoe or even Goodwill is a better use of used

footwear. How about tracing a shoe and cutting out the shape, then writing SHOO! on it? (Yes, I know it's "shoe," but I prefer the double whammy of the shoe shape and the shoo word. He'll get it.)

[HowHasItComeToThis]

2. REPUBLICANS UNDER BUSH HAVE RAPED AMERICA

HOW DO YOU FEEL AMRICA

[Hekate]

17. It looks like what Enron did to California was just a preliminary to what BushCo is doing to the USA

And yes, it is rape.

I want Bush-Cheney et al. in the bowels of Hell with Richard Nixon.

Hekate

[lovuian]

19. All that he has done can be undone

that if we have the will to undo it

this is all paper mirage

[Hekate]

23. I believe that President Obama has the desire and the judgment necessary, but it will take months...

... years, even. And the new Congress will have to be on his side. I hope to God this works.

As Al Gore said, our most renewable resource is political will -- if we want to.

Hekate

[tclambert]

22. The squealing like a pig seemed excessive.

But when they brought out the corn cob, that was just hillbilly mean.

[Phred42]

30. The Rape was under way with Reagan

[RCinBrooklyn]

3. Republicans since Nixon have been banging await at America for decades. Too late to yell, "Rape!!!"

[boomerbust]

4. Oh Ya

And you can bet Bush And Cheney will have a billion or two waiting for them when they leave office!

[shanti]

5. that's a given

they have more money than they'll ever need in their lifetimes - they made sure of that.

[Hawkeye-X]

6. Fine, have Congress fix that loophole RIGHT NOW.

No more free giveaways for Chimp, EVER.

It's WAY past time to impeach the motherfucker and send him to the Hague.

[robinlynne]

34. Agreed. Congress can stop this, like they could have stopped the war!

They do not want to stop it! They are criminally negligent. over and over again.

[LaPera]

7. Republicans are just pure filth! All of them fucking, greedy, selfish, hate-filled lying pigs!

[Jack Sprat]

8. Why can't Sen Grassley man up

It just seems like one republican, who can see the treachery first hand, could stand up and call BushCo the gangsters that they are. I know it's dreaming to think there is someone of integrity out there, but I just wish.

[KakistocracyHater]

9. you're asking for a leader-in Congress

they're just the popular kids, squeaking by....country club connections....family connections....not leaders, no.

[cascadiance]

10. Will ANYBODY impeach this damn CCRRIIMMIINNAALL!!

[dem91203]

11. Executive compansation

This is an excellent example of why the auto makers are in such a horrific state of affairs. The only thing important to these so called corporate geniuses is getting their pay checks and bonuses. As much as they can and as often as they can get away with collecting more money.

Remember The signature tune from Cabaret ? MONEY MONEY MONEY

[truedelphi]

12. Why Blame Just Bush. Congress is supposedly made up of

Savy, well educated people, most of them well educated.

Isn't it fundamentally wrong having a Congress that perpetually declares that they need to do things in a hurry without reading the many pages of a bill? However, I am sure that when they are making out contracts involving their personal well being, they are quite careful, and examine every T and see to it that every I is dotted..

But it is only the tax payers' money - so the reamifications if what they do apparently makes little difference to the Congress whores.

[bertman]

27. Absolutely correct, truedelphi. How could Congress possibly have foreseen that Bush

and Paulson might have some poison pill in the Financial Failure Reward? Why would ANY Democratic Senator or Congressperson have been even slightly skeptical that this EMERGENCY BAILOUT might have been just one more way to raid the Treasury?

Why would any of our representatives actually notice a one-sentence change INSERTED AT THE VERY LAST MINUTE. After all, they're not lawyers are they?? Oh wait. Yes, many of them are, and yes, our President-elect is also.

We certainly could not have expected the guardians of America's treasury, the Congress of the United States of America, to have their thousands of well-paid and well-trained staff lawyers and accountants review the document for any possible GIGANTIC LOOPHOLES. Could we?? After all, this was EMERGENCY LEGISLATION that we could not possibly have spent a few more days or weeks examining in excruciating detail for exactly this type of problem.

And, least of all, how could we possibly expect our Congress to demand that this LOOPHOLE be closed and that the individuals/corporations who took advantage of it be forced to repay every freakin' dime.

Sad to say, but every Republican who voted against this has every right to trumpet the stupidity and complicity of the Democratic Party in this raid on the U.S. Treasury.

[truedelphi]

33. I am ditto-ing your response so it can be posted to my journal.

Bertman says -
How could Congress have possibly foreseen that Bush and Paulson might have some poison pill in the Financial Failure Reward?

Why would ANY Democratic Senator or Congressperson have been even slightly skeptical that this EMERGENCY BAILOUT might have been just one more way to raid the Treasury?

Why would any of our representatives actually notice a one-sentence change INSERTED AT THE VERY LAST MINUTE. After all, they're not lawyers are they??

Oh wait. Yes, many of them are, and yes, our President-elect is also.

We certainly could not have expected the guardians of America's treasury, the Congress of the United States of America, to have their thousands of well-paid and well-trained staff lawyers and accountants review the document for any possible GIGANTIC LOOPHOLES. Could we?? After all, this was EMERGENCY LEGISLATION that we could not possibly have spent a few more days or weeks examining in excruciating detail for exactly this type of problem.

And, least of all, how could we possibly expect our Congress to demand that this LOOPHOLE be closed and that the individuals/corporations who took advantage of it be forced to repay every freakin' dime.

Sad to say, but every Republican who voted against this has every right to trumpet the stupidity and complicity of the Democratic Party in this raid on the U.S. Treasury.
####

Thank Bertman, you covered so many of the bases that I am taking the liberty of posting this comment of yours on the BailOut Bill into my Journal.

[TechBear_Seattle]

28. Congress is made up of spineless quislings

Word of the day: quisling n. Synonyms: collaborator, traitor.

The word comes from the name Vidkun Quisling, a Norwegian army officer who collaborated with the Nazis in World War II and, for his help, was appointed Ministerpräsident ("Minister-President") of the puppet government set up during the German occupation of Norway. After the war, Quisling was convicted high treason by the restored democratic government and executed. His name as become synonymous with those who collaborate with evil for personal gain.

[truedelphi]

32. I knew that I had heard that name before

Wanna know how the Germans came to occupy the Western area of Norway?

Here os the story that I heard: They stationed their landing crafts on the Norwegian shores, and sent their infantry up the hills of the coastline, where they stood and waited for the busses into Stavanger.

Paid their money and took public transportation.

THe bus drivers didn't even think of not letting them board!!

But Hey, at least it was a Green invasion.

[Kaleko]

13. Brazen. The mask is coming off bit by bit.

"Stop, children, what's that sound?
Everybody look what's going down."

[orleans]

14. oh christ!

and this fucking repuke, grassley!

"The flimsy executive-compensation restrictions in the original bill are now all but gone," said Sen. Charles Grassley, a Republican from Iowa and ranking member of the Senate Finance Committee.

could he be anymore of a dried up, incompetent prune?

hey grassley! you've been sucking bush off all these years--you and the rest of your republicon cohorts. are you laughing or crying when you say the restrictions "are now all but gone?" you prick!

[Career Prole]

18. It probably took him a dozen takes

to say that line without laughing.

[orleans]

38. yep. n/t

[davidthegnome]

15. The silence from those of us here

who originally supported the bailout, comes as no surprise.

[TheEuclideanOne]

16. So how many billions are going to these executives if you add all of their salaries and

bonuses? If I recall correcly, it was somewhere in the neighborhood of $15 billion. I am not sure though. It is funny how there is no uproar over that, but if you try to give money to the automakers, the republicans have to put their foot down. Why not pass the "Robin Hood" provision that collects all of the bonuses and salaries from the execs of these companies that are being bailed out and given them to the 3 automakers looking for a handout.

[liberal N proud]

20. The $700 Billion will go down as one of the biggest heist in history

[Vinca]

21. The Bush Administration - raping and pillaging until the last second of power. nt

[Gin]

25. Mission Accomplished!

[AzDar]

26. Thank God It Passed !

:puke:

[SpiralHawk]

29. Freaking republicon Pharisees -

What a pack of hyenas the Republicons are, preying upon the people of America

[alfredo]

35. A parting gift to his "base."

[Acadia Blue]

36. Parasitic blood sucking ticks on the backs of the middle and working class is

the definition of Bush and his buddies.

[No Elephants]

37. Don't blame this on Bush. Congress passed it.; and we, the people, have not mounted an outcry. We

MUST start holding Congress accountable, whether Democrats or Republicans control it. In fact, we MUST start holding ALL elected officials accountable. The electorate is much too passive.

"We have met the enemny and they is us." Walt Kelly, Pogo.

But none of us wants to hear that because it is easier and more satisfying to point fingers at people other than ourselves. Until WE take authority (and responsibility for our own inaction) though, we are going to be screwn again and again and again.

[riverdeep]

41. Excuse me, but we the people most certainly did register an outcry.

At the time, thousands of calls were coming in, with staggeringly lopsided ratios on demanding the representative go AGAINST this scam. It was actually one of the few times in the last eight years (the immigration bill being another) when the public at large has awoken from it's normal stupor. Congress did it anyway.

[Solly Mack]

39. snort

[riverdeep]

42. Trust us.

At the time, I found this cartoon perfectly summarized what was happening:



...and it came true.

I'm not really disappointed in the Bush administration, that's what they do-they're just fucking evil. I am very disappointed in the Democrats, and Obama included, who really took over and championed the bill and stood in front of cameras so proud of themselves.

The bigger issue besides executive compensation is that the money isn't being used by the banks that is was supposed to be used for. Gee, who'd a thunk?