The U.K. unveiled its own bank bailout plan this morning.
And unlike in corresponding U.S. plans, the British government is firing executives who steered the institutions into collapse. The U.S. priority is still to protect CEOs, executives, board members and financial industry elite, while shifting cost and risk onto the citizen.
Why?
From the Telegraph:
Royal Bank of Scotland will today clear out its boardroom as part of a shake-up, demanded by Government, for a state-assisted re-capitalisation of the bank.
Chief executive Sir Fred Goodwin and chairman Sir Tom McKillop are out. They are to be replaced by Stephen Hester, formerly of the Abbey, and Sir Philip Hampton, currently chairman of Sainsbury's.
As part of the deal with Government, there will be a future cap on executive pay and shareholder dividends.
Why is this not happening in the U.S.?
Paulson's $700 billion (or $1 trillion) bailout plan will certainly be followed by more ... and more ... and more bailout dollars paid by the U.S. citizen. Any bank that wants to participate in this great handout should suffer the same consequences as the Royal Bank of Scotland.
CEOs, board members and executives should be purged ... and their replacements should be paid civil servant wages.
The way things stand now, millions -- if not scores of millions -- of dollars in public bailout money will go into the pockets of those who created this mess.
In the U.S., we still have trickle-down accountability.
The rich cause the problems and the working people pay the bills.
In the debate last night, Barack Obama said that AIG executives should be fired for their now notorious post-bailout spa trip.
But that is just the tip of the iceberg.