Obama Taking Hands-Off Stance on Citi, AIG Pay

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Published at: www.bloomberg.com

Why Not? Would the Results be any Different?

November 12, 2009

Analysis by: GLG Expert Contributor

Why should Obama have to be directly involved with the process?  How would the process be any different if he did?

Truth or consequences

October 31, 2009

Analysis by: GLG Expert Contributor

By setting up Kenneth Feinberg as the bad guy, the Obama administration can claim that it is taking a hands-off stance with respect to executive pay.  Nothing can be further from the truth.  Mr Feinberg derives his authority from the same government that claims to be taking a hand-off approach. This is not to say that the federal government should not have a "say on pay" for banks and automakers that have been bailed out with taxpayer funds, many of whom would not be in business otherwise.

Should the government intervene in corporate executive compensation?

October 30, 2009

Analysis by: GLG Expert Contributor

Obama’s administration should not have to micro-manage the financial institution, such as AIG, Citi, which received tarp money. However, the administration is correct in letting Kenneth Feinberg, U.S. Treasury Department, handle this issue concerning misappropriation of funds. The government should have given tarp money with strict restrictions on use of funds: (i) increase cash reserves level, (ii) reduce debt, and (iii) spend on capital investments.

Hands Off Government - Non Intervention in Pay Deals and Diversionary Tactics

August 22, 2009

Analysis by: GLG Expert Contributor

The financial services industry in the UK does not care one jot what the Financial Services Authority (FSA) does, or says. The FSA truly is a creation of the politicians!