Treasury Sec. Paulson said any rescue package should not be punitive. Wha?? Yes. It should be punitive. Executives, if not forced to go down with their ships, should at least have to accept a reasonable salary. This thinking is so ass-backwards: The Washington Post reports that "precedent" for making executives of failed firms feel the pain can be seen in the fact that Freddy and Fanny execs were forced to make do with less than $10 million.
How about less than $1 million? I mean really.
Here's the quote:
When regulators took over mortgage financiers Fannie Mae and Freddie Mac earlier this month, they not only removed the firms' top executives but also eliminated $12.59 million in "golden parachutes" that had been promised in severance pay and bonuses. The executives, Daniel H. Mudd of Fannie Mae and Richard F. Syron of Freddie Mac, will now get $9.43 million upon their exit.
Link.
Come on. This is not rocket science. These guys are so out of touch.
I think Obama is right to link the bailout with recognition of the moral debt owed to ordinary Americans.
Can these dudes.