Moving Spending from Wall Street to 'Main Street'
POSTED: Thursday, October 22, 2009 - 9:03am
UPDATED: Thursday, June 3, 2010 - 11:57pm
President Obama in New Jersey last night campaigning for its Governor and for new policing of Wall Street. "This crisis came about because of the same sorts of lax regulation and trickle down economic theories that the other guys party has been peddling for years!" said Obama.
Responding to public anger over the return of profits and bonuses at bailed out firms, the Administration is ordering new pay rules at seven of them. Top earners at AIG, Bank of America, Citigroup, as well as GM, Chrysler and their financial arms will see overall compensation cut in half, salaries largely replaced by stock in the companies.
Andrew Ross Sorkin, author of ‘Too Big To Fail’ said, "The good news is that this may fulfill the public lust for blood on Wall Street." The plan has stirred new debate over the year-old bailout. Senator Mitch McConnell, Senate Minority Leader said, "If the government's your partner, expect them to be running your business for you, including what your employees will be paid."
Wall Street's critics say, good. Elizabeth Warren, Chair of the Congressional Oversight Panel said, “The broken system right now is tax payers shovel money into these financial institutions, prop them up and then private individuals are taking the money and running with it. That can't be the right system either. So it's not as if 'normal' here works."
President Obama also aimed new help at small businesses. "We will help them get the credit they need to do it at rates that are more affordable than the ones offered to our largest financial institutions," said Obama. The move aims to spur lending by small banks as larger ones are still leery of lending away their cash.