[lbo-talk] Dodd bill

Michael Pollak mpollak at panix.com
Mon Sep 22 23:12:14 PDT 2008


On Mon, 22 Sep 2008, Doug Henwood wrote:


> Sen Dodd's bailout bill looks not too bad - limits on pay, foreclosure
> protection, gov gets equity interest...
>
> <http://www.politico.com/static/PPM41_ayo08b28.html>

It does look good. I esp. like the claw-back provision on chief executive compensation that later turns out to be based on inaccurate corporate earnings that every participant has to agree to. Does that mean we can retrospectively take back Stan O'Neill's bonus?

But one essential thing seem to be missing: a deep and comprehensive new regulatory power. Even if we leave out the details, isn't this the moment to pass it? And until then get all participating institutions to agree that the head of an ad hoc authority can limit their activities in any way he sees necessary to maintain financial stability?

Michael



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