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December 31, 2008

"Stop the Greed on Wall Street Act" introduced in the Senate

Senator Bernard Sanders (I-Vt) introduced legislation (S. 3693) on November 19 that would limit the amount of compensation for employees of financial institutions receiving funds from under the $700 billion bailout. This Bill is called the Stop the Greed on Wall Street Act, and it  would amend the Emergency Economic Stabilization Act (P.L. 110-343) to limit the aggregate annual compensation of any employee of companies receiving funds under the Act to the amount paid to the President of the United States, which is currently $400,000.
The Bill has been referred to the Senate Committee on Banking, Housing, and Urban Affairs,and it would affect the 30 current companies that have received varying amounts of assistance.
I suspect that this Bill just might pass.

Mitchell H. Rubinstein

December 31, 2008 in Current Events | Permalink

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Comments

While greed is certainly a factor on Wall Street, it is not the root cause of the crisis caused by financial instutions. Rather, trying to push the limits as far as possible within limited and insufficient regulations is more the issue. You could limit the compensentation of the top execs of all Wall Street firms and that would still not have prevented what has happened.

Posted by: Bryan Mackinnon | Jan 4, 2009 11:58:48 PM

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