The widespread Congressional call for executive pay limits on executives of banks that get bailed out is logical in view of the fact that Paulson’s proposal benefits the stockholders and existing managements of these banks by keeping them in place instead of going through an FDIC bankruptcy or failure procedure that would no doubt oust them. The Bush administration is said to be resisting, and this shows its country club bias. It’s a vote-loser for Republicans. But also of interest is that some Democrats favor the plan like Frank and Schumer while some Republicans like Jim DeMint (S.C.) are against … Continue reading Politics of Paulson’s bailout plan