Another Obama DeceptionSubmitted by kentukblue on Mon, 04/06/2009 - 09:49
Essentially shows that Obama removed pay limits on firms receiving bailouts, then when the AIG bonus blew up, he pushed through new limits on pay to please the masses. Then he made sure there were loopholes in the law to keep paying the bonuses...
Saturday, April 4, 2009; Page A01
The Obama administration is engineering its new bailout initiatives in a way that it believes will allow firms benefiting from the programs to avoid restrictions imposed by Congress, including limits on lavish executive pay, according to government officials.
Administration officials have concluded that this approach is vital for persuading firms to participate in programs funded by the $700 billion financial rescue package.
The administration believes it can sidestep the rules because, in many cases, it has decided not to provide federal aid directly to financial companies, the sources said. Instead, the government has set up special entities that act as middlemen, channeling the bailout funds to the firms and, via this two-step process, stripping away the requirement that the restrictions be imposed, according to officials.