I smell socialism


Filed Under General on Feb 4 

Wall Street shouldn’t be surprised as B. Hussein Obama announced today salary caps on banks receiving bailout funds; but they sure aren’t too thrilled about it. What did they expect when they were handed millions of dollars from the federal government?

Some may argue that the government has every right to ‘protect its investment’ by legislating how much CEO’s take home. Sounds fair, right? I mean, $500,000 is a hefty chunk of change; who needs to make more than that?

Herein lies the problem: Government Regulation. CEO salary is not for you, me, and certainly not Mr. Obama to decide. (Anyone seeing freedom vanishing before our eyes?) Didn’t we all see this coming as government decided to extend its helping hand to the private sector? This is what happens when we let our elected officials put one foot in the door and into our personal and private space. Pretty soon they’re kicking back on the sofa with their feet propped up on the coffee table. They’re here to stay. And they’re dictating every facet of our lives.

The biggest side effect of this salary limit is chasing away top talent. Why would talented CEO Bob (who makes millions) stick around or be attracted to a company that will pay him one tenth of what he could make somewhere else? Now we’re stuck with mediocre CEO Joe who lacks the skills and leadership to take the company where it needs to go, and will only bring in second and third-rate results. We need these establishments to succeed; not fail. Large portions of bailout money should be used to find, hire, and pay the most successful money managers and analysts. They’re the folks who will restore profitability to the banks. (Well, they shouldn’t have been bailed out in the first place, but that’s another can of worms…..)

Where was this regulation when Wells Fargo decided to vacation in some of Vegas’ top casinos? Or Citi’s refusal to reconsider plans to spend $400 million on naming rights to the New York Mets’ new ballpark? Or the office and bathroom renovations by Merrill Lynch executives?