Angry senator proposes pay limit for Wall Street 'idiots'
[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2009/images/01/30/art.bomccaskill0130.gi.jpg caption="Missouri Sen. Claire McCaskill introduced legislation Friday that would prohibit employees of companies that receive federal bailout money from earning more than than president of the United States."]
WASHINGTON (CNN) - One day after President Barack Obama ripped Wall Street executives for their "shameful" decision to hand out $18 billion in bonuses in 2008, Congress may finally have had enough.
An angry U.S. senator introduced legislation Friday to cap compensation for employees of any company that accepts federal bailout money. Under the terms of a bill introduced by Sen. Claire McCaskill, D-Missouri, no employee would be allowed to make more than the president of the United States.
Watch: 'These people are idiots,' says McCaskill
Obama's current annual salary is $400,000.
"We have a bunch of idiots on Wall Street that are kicking sand in the face of the American taxpayer," an enraged McCaskill said on the floor of the Senate. "They don't get it. These people are idiots. You can't use taxpayer money to pay out $18 billion in bonuses."
McCaskill's proposed compensation limit would cover salaries, bonuses and stock options.
On Thursday, Obama said the prospect that some of the $700 billion Wall Street bailout could end up paying for bonuses to managers of struggling financial institutions was "shameful."
The president said it was the "height of irresponsibility" for executives to pay bonuses when their companies were asking for help from Washington.
"The American people understand we've got a big hole that we've got to dig ourselves out of, but they don't like the idea that people are digging a bigger hole even as they're being asked to fill it up," he added.
McCaskill's proposal comes three days after struggling banking giant Citigroup - which has taken about $45 billion from the government's Troubled Asset Relief Program - reversed plans to accept delivery of a new $42 million corporate jet, under Treasury Department prodding.
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I think Senator McCaskill is a great representative for not only the people of Missouri but the whole country. It is great to see one of the richest members of the senate care about the everyday working person. I will support her with a contribution with pleasure.
Personally, I think this is what these financial businesses need. They are not private entities any longer – they are being kept afloat by taxpayer money – we are now their bosses, so guess what? We get to set the salary. Once they pay whatever bailout money they got back, then fine, but not while I'm footing the bill. By the way, for all of you who are too lazy to look up the definition of socialism, here it is:
"a political theory advocating state ownership of industry,
an economic system based on state ownership of capital "
As I recall, it was the banks and titans of finance who came begging for government money. They were loaned money with the expecation of paying it back. I don't think anyone is advocating for an entire system of state owned industry.
No bigger idiot than this chick. Maybe she should lobby for the Fed to return the money Wall Street donated to the inauguration.
Jim, your plan to have the IRS audit Wall Street, well the IRS is now run by a tax cheat, so good luck with that.
It sure would be nice too have that $90,000.00 clothing allotment the poor congress and senate gave them-selves . Take more taxpayer money thyat we don't have.
Tsk..tsk...tsk...Senator. It's only money!!!!
Boston Irish January 30th, 2009 2:33 pm ET
Best news I've heard in a long time. Why did it take this long for someone to become angry enough to propose a law to stop the HUGE bonuses these, as she says, IDIOTS get paid?? Thank you Senator McCaskill for your great suggestion. Now just get the rest of them to go along with you and maybe something can be done. Everyone reading this, make note of who votes NO on this or just doesn't vote at all and let them know in the next election exactly how you feel about their vote or lack of it.
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Sounds good to me.
Horay ! for Senator McCaskill , as long as the tax payer is footing the bill, We the American people have a right to tell private employers what the can recieve in compensation. Who do they think they are to give out billons in tax payer money for failure. Who in Gods name pays anything for damaged goods, poor performance, I have never heard of stock holders who rewarded someone who drove their company into the ground say you did a great job I want the company which I held shares in to fail and you Mr. CEO should get a bonus for doing it . Thats a Great idea, every failed company the boss and all the mangers should get a fat bonus. Now, that a Great idea and I want to head up that company
Image a world where taxpayers pay billions to bailout banks…banks in turn layoff thousands of employees…bank executives take fat bonuses…oh, wait, this is happening in real life.
This Senator has the right idea.
Wall street is a gambling Institution betting on the future of a corporation supposely with logical information on such companies.It is no better for anyone to invest their retirement funds or savings in wall street or your local slot machine in an Indian casino.
As you see the odds are the same most of the time .
when you the media speaks of "big guns" or "the best in the business" for CEOs lets all laught about it.... A CEO offers products and directions to a public in accordance to what Wall Street is expecting . No more.
The bonuses they take should not exist period.
They agree to a salary to start with same as any worker at any level.
They also blame the average American for their downfall and the condition the stock market is today. Tell them the average American takes the products they offer. If a Bank offers terrible loans to a barrower knowing it may be wrong to do so in the first place... do not blame the consumer for the failure !!!!! It seems to me the so called CEOs, "experts" best in the business etc... have no balls when it comes to face the failures they put this country as a whole.
While they cash their bonuses and laughing all the way to their failed banks, they show their true face. No more bonuses for failed institutions in need of a bail out. PERIOD