I would have loved to have been a fly on the wall of some prominent bank boardrooms when they got the news that government TARP money may come with a few strings attached. Yesterday, The New York Times article, In Curbing Pay, Obama Seeks to Alter Corporate Culture states that the current administration is considering placing limits on executive pay for the corporate officers of firms who have received bailout money and/or are looking to obtain money from the second wave of TARP. The current proposed limit is $500,000. However, in my opinion, why stop there? I think the limit should be substantially lowered. How about $50,000. I can think of no better incentive to get these former private-sector firms start thinking like capitalist again.
Apparently, just the discussion of limits has been enough incentive to make Goldman Sachs, which received $10 Billion in TARP money, to have buyer's remorse. Wednesday, David A. Viniar, the chief financial officer of Goldman Sach, stated firm is looking to repay the money they received as soon as possible in order to "be under less scrutiny and under less pressure." Welcome back to capitalism Goldman Sachs.
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