New Obama Plan Aims to Control Exec Pay

By Neal Colgrass,  Newser Staff
Posted Mar 21, 2009 7:51 PM CDT
A protester holds a sign in the financial district of Chicago before marching towards AIG offices Thursday, March 19, 2009.   (AP Photo/M. Spencer Green)
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(Newser) – The White House will roll out a plan next week to oversee executive pay and more deeply regulate Wall Street, the New York Times reports. Officials are still debating the details, but under the proposal, the Fed will supervise compensation at financial firms, banks, and other companies—even ones that don't take bailout funds. Officials will also regulate hedge funds and publicly traded companies.

If approved, the plan will force Wall Street's twilight world into the open, making trades of derivatives and other financial instruments more transparent. President Obama will unveil the proposal this week, before a G-20 meeting in London, to urge European nations to further stimulate their economies. That likely won't work, says the Times, which adds that the hedge fund industry may have enough Capitol Hill power to stymie the plan.