Sunday, April 05, 2009

Soft Denials from Axelrod & Geithner on White House Workaround

The Washington Post reported the Obama administration would use intermediary structures to insulate financial firms from Congressional limits on executive pay. Tim Geithner and David Axelrod said the administration wasn't trying to get around the law, but acknowledged having to make participation attractive for financial firms. They did not deny the use of intermediaries as means to get participation. Nor, did they commit to not using them.

Axelrod's and Geithner's defense focused on motivation, not application. Which $10 billion or larger firm will participate under the legislated executive pay terms? Very few. The practical outcome involves intermediaries shielding firms from the law. Corporafornication lives.

No comments: