Not only does Rep. Barney Frank (D-Mass.) want to slander corporate executives by dragging them in front of some stupid committee hearing and confiscate their pay retroactively, Frank wants to have control over all compensation of any employee who works for a company that may have received bailout funding.
My question is, will the Treasury secretary be able to retroactively change the union contracts negotiated with car manufactures who have received bailout funds?
My guess is that will be off the table. (More on this soon)
Beyond AIG: A Bill to let Big Government Set Your Salary
… in a little-noticed move, the House Financial Services Committee, led by chairman Barney Frank, has approved a measure that would, in some key ways, go beyond the most draconian features of the original AIG bill. The new legislation, the “Pay for Performance Act of 2009,” would impose government controls on the pay of all employees — not just top executives — of companies that have received a capital investment from the U.S. government. It would, like the tax measure, be retroactive, changing the terms of compensation agreements already in place. And it would give Treasury Secretary Timothy Geithner extraordinary power to determine the pay of thousands of employees of American companies. …
It applies to all employees of all companies involved, for as long as the government is invested. …
… the bill gives Geithner the authority to decide what pay is “unreasonable” or “excessive.” And it directs the Treasury Department to come up with a method to evaluate “the performance of the individual executive or employee to whom the payment relates.”
Where are we going with all of this Congressman Frank? Just admit it congressman, you just want the government to control everything. When this does not work out – and it will not work out – I guarantee the problem will be the way the private sector does business.
If Government Motors fails, it will not be the fault of GM or the government, it will be the fault of Toyota, Nissan, Honda and Ford – the companies who have not accepted TARP funds yet.