White House to Issue New "Pay Limits" Czar and regulator: Kenneth Feinberg

[vaberella]

Yes, this is entirely connected to BIB's (BlooInBloo) great post on Wall Street "Pay Limits". For those who haven't read that article or thread here is the link: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=132x8461392

A lot of people were not sure how this was going to play out and felt that there were not real regulations in place. Obviously Geithner was ahead of the naysayers because he's about to appoint a Czar by the name of Kenneth Feinberg. This says to me that rules and regs are in place and will most definitely be enforced by a new entity and organizer.

Now keep in mind that this does give a lot of power to Feinberg but not as much as some would think considering that it goes by Geithner and anything that goes by him MUST go by Obama as can be noted by Brian Williams tour of the White House (this is based on what I saw in the commercial considering I haven't seen it).

So there will be limits in his power as well I'd assume.

Here's is a link to an article produced by wsj.com

The Obama administration earlier this year issued guidelines that include limiting salary for top executives at some firms receiving TARP funds and requiring that additional pay be in the form of restricted stock, vesting only after the company repays its debt, with interest, to the government. Congress then chimed in with even tougher rules curbing bonuses for top earners at firms receiving TARP money. As part of that effort, lawmakers barred those firms from paying top earners bonuses that equal more than a third of their total compensation.

The White House has been wrestling with how to marry those two efforts, which in combination are more punitive than administration officials had intended.

The government is also pursuing a separate revamping of financial-sector rules that could change industry compensation practices more broadly. For instance, the Federal Reserve is considering rules that would curb banks' ability to pay employees in a way that would threaten the "safety and soundness" of the bank.

Mr. Feinberg is expected to focus on pay restrictions related to firms receiving TARP bailout funds, helping companies to interpret the rules and ensure that they are being followed.

For instance, companies have been confused about whether to pay 2008 bonuses, since restrictions on incentive pay didn't go into effect until early 2009. Some firms have made the payments while others have held off. Many firms are also unsure whether the "top earners" targeted by Congress include rank-and-file employees or just executives.
Journal Community

Mr. Feinberg will report to Treasury Secretary Timothy Geithner, but he is expected to have wide discretion on how the rules should be interpreted. Firms likely won't be able to appeal decisions that Mr. Feinberg makes to Mr. Geithner, according to people familiar with the matter.

Mr. Feinberg, founder and managing partner of the law firm Feinberg Rozen LLP, spent several years overseeing payouts totaling more than $7 billion to victims of the 9/11 attacks. He personally reviewed every claim, approving or denying awards and allocating sums to be paid out of the Treasury.

http://online.wsj.com/article/SB124416737421887739.html

One nice little poster that is shown on their site was quoted as saying:

“ Obama is establishing a new cabinet of officials who are accountable only to him. This is an unprecedented power grab. ” — Kathryn Reagan

Why did I highlight the above...because this move is seen as stated by a post on hotair.com (I believe this is most definitely a RW site) that he's making Congress ineffectual. Why do I like it? Well The Senate is full of shit heads that are not here for the people and Obama is ensuring that shit is going to get done. Not to mention this department is under his regulation as well. I do think there should be a bit more balanced because a shit President could really screw us over with that power. But there are rules and regs and this guy is just an enforcer.

Now why do I like this even more?! It connects to something that happened a few months back to the whole Bernie Madoff scandal. There was a gentleman named Harry Markopolos----He actually called for such a person and department to look over the SEC and FED as well (get this I do believe (implied strong possibility--but I can't be certain) this Pay Czar has jurisdiction over them as well---since they're on the list of institutions being regulated). <--- Please keep note of this in bold.

Yes...I know!!! The SEC and the FED regulated?! I can only hope so far, but it could be a reality---it's about damn time. So This guy is actually an idea that is finally going to be of fruition. If you'd like to read the hotair.com article---it's actually very informative even though it definitely has an angle. Everything they're against is actually what we want on Wall Street and the final sector even though they do shed light on some regulation of the department---but the department is only there to interpret the rules. The paper states there are no chance of appeals---but seriously why would I give the financial institutions power of appeal when they fucked us over. Deal or get out. Here's a look at their perspective (which is admittedly faulty): http://hotair.com/archives/2009/06/05/czar-watch-the-pay-czar/


Here is the video to Harry Markopolos' call for a department that overseas the damned SEC (at least) if not the FED.

This is the three hour vid: http://cspanjunkie.org/?tag=harry-markopolos (I love that site!!)

Here is the exerpt:

http://www.youtube.com/watch?v=VeJm2sBq-nk&feature=related <----Ha!! SEC is screwed!!

I hope anyway. I haven't heard who else might be working in that department since I just heard this news...but damn!

http://www.youtube.com/watch?v=06vrqMJd2NQ

Edited to include Mr. Kenneth Feinberg's info:
http://en.wikipedia.org/wiki/Kenneth_Feinberg
http://www.washingtonian.com/articles/people/6731.html <--Article interview

If anyone has some thoughts on him or know of his work please don't hesitate to comment. I'm wondering how strong he'll be against the banks to ensure that they do feel some punitive price for their past actions.

[MercutioATC]

1. Ok, so we're now replacing the windshield wipers on a rusted-out jalopy that doesn't run.

:woohoo:

[vaberella]

2. Well what would you suggest? I actually like the news.

Unless you mean taking out the SEC entirely and dismantling the financial sector...but into what?

[MercutioATC]

3. Start by demanding true mark-to-market evaluations.

...instead of letting the banks make up their own numbers.

Require that X percent of any TARP loans be redistributed as consumer loans within 6 months.


You know, stuff that will actually make a difference...

[babylonsister]

5. I just love all the experts on here; makes me wonder why they weren't

hired for their knowledge? Somehow their financial brains were overlooked in the hiring process.

[MercutioATC]

7. You REALLY think that CEO pay limits are an issue...

...when we have no standardized accounting and no conditions on the money these corporations are being handed?

(It shouldn't take an "expert" to tell you that the answer is "no")

[ClarkUSA]

4. Looks like Pres. Obama is tightening the screws. Feinberg has an impressive advocacy background.

Already 10 more banks are repaying their TARP funds with 5% interest because they hate the strings Team O attached. This should speed up the process. I have no doubt Feinberg is going to try to do a good job. Thanks for the good news. :hi:

[BlooInBloo]

6. Now I see why DUers liken Obama to Reagan. Obviously this is precisely...

what Reagan would have done. :rofl:

[HopeOverFear]

8. k and r

[firedupdem]

9. Great Post Vab...

thanks for the info...I've been out of the loop. This is good news.

[rockymountaindem]

10. Good post with interesting stuff

Thanks :)