Monday, December 15, 2008

Bush's TARP Has No Executive Pay Limits

George Bush's craftiness in fleecing America should not be underestimated. Why did the Federal Reserve Bank buy AIG's toxic assets and not the Treasury? Had the Treasury made the purchase via auction, executive pay could be limited. That wouldn't do. The NYT reported:

One sentence in the bill, added at the insistence of the Bush administration, required that executive-pay provisions apply only to firms that hold troubled assets to the government in auctions. But the Treasury Department has switched strategies since then, instead making direct investments in financial institutions.

Recall Bush lectured Wall Street traders at the NYSE over executive pay. George W. consistently looked after his wealthy peers.

A financial firm catering to the high net worth marketplace received TARP equity investment. Boston Private Financial Holdings bragged of their strong capital position. Yet, Carlyle Group affiliate BPFH received $154 million in taxpayer money. This occurred while Carlyle had $40 billion of dry powder and actively searched for financial investments.

In the 1990's George W. Bush served on the Board of Carlyle affiliate CaterAir. Two timer President Bush and his TARP caters to the executive class.

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