We Should Offer Banks a Choice on Exec Pay

Both took cash from leaders; McCain's manager is GSEs' ex-lobbyist

(NEWSER) - Barack Obama and John McCain are both railing against the excesses of Fannie Mae and Freddie Mac on the campaign trail, and promising to end the lobbyist culture in Washington that led to their fall. But both candidates and their parties have multiple ties to Fannie and Freddie, the New York Times reports, and both have taken campaign contributions from their leaders. More»

Ex-Treasury sec says Mac risked putting US economy in freefall for 'political gambit'

(NEWSER) - With the US economy in utter freefall, John McCain suspended his presidential campaign, jetted to Washington, called a meeting to fix the crisis—then did nothing, according the Henry Paulson's new book, On the Brink . In an excerpt in the Wall Street Journal, the former Treasury secretary recounts McCain's odd refusal to speak at the emergency meeting he called, and how the Democrats and Barack Obama pounced. More»

Reining in pay is good politics, good economics: Krugman

(NEWSER) - Just as the recession wanes and the financial system shows signs of the health, banks are returning to their worst habits, says Paul Krugman. Not only are paychecks soaring to pre-Lehman levels, but the financial sector is using its muscle to block "even the most minimal reforms." While the Fed knows what needs to be done most—"change the industry’s incentives—which means, in particular, changing the way bankers are paid"—President Obama is showing a disturbing lack of backbone, writes the New York Times columnist. More»

(NEWSER) - Unlike a certain talk radio host, John McCain is rooting for Barack Obama—they just don’t agree on much. In an interview with Politico, McCain says he’s trying to work with Obama; in the past week he’s appeared with him at a press conference and consulted with Robert Gates and Joe Biden. “These are terrible, perilous times,” he said. “I don’t want him to fail.” More»

Package bans cash bonuses for bailed-out firms' high earners

(NEWSER) - A late addition to the stimulus package puts tougher restrictions on executive pay at bailed-out financial institutions, reports the Wall Street Journal. The rules go further than the Obama administration proposed, affect more employees, and could seriously crimp the culture of gargantuan bonuses. The big one: Bonuses can't exceed one-third of annual salaries. If banks don't play along, they have to return their bailout money. More»