Barney Frank: Hey, let’s cap executive compensation for everyone

posted at 7:18 pm on February 6, 2009 by Allahpundit

Socialist creep. And I mean that in both senses of the term.

Congress will consider legislation to extend some of the curbs on executive pay that now apply only to those banks receiving federal assistance, House Financial Services Committee Chairman Barney Frank said.

“There’s deeply rooted anger on the part of the average American,” the Massachusetts Democrat said at a Washington news conference today.

He said the compensation restrictions would apply to all financial institutions and might be extended to include all U.S. companies.

The provision will be part of a broader package that would likely give the Federal Reserve the authority to monitor systemic risk in the economy and to shut down financial institutions that face too much exposure, Mr. Frank said…

Mr. Geithner said he would consider “extending at least some of the TARP provisions and features of the $500,000 cap to U.S. companies generally.”

It’ll never pass — I think. Granted, we shouldn’t underestimate the appeal of a populist gesture to offset the anger that TARP II’s going to cause, but McCaskill and then Obama and Geithner all paid lip service in their public statements on this subject to the idea that private entities can pay their employees whatever they like. Only when they need rescuing from the feds should the government be entitled to a say, or so the theory goes. If Democrats are planning to expand the concept, they’d better have a handy explanation for why their current position is wrong. Just like they’d better be prepared to see donations from Wall Street tilt sharply to the GOP. (Or had they?) Exit question: Tough talk from Frank or does he really mean it?


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Hey,, lets do term limits!

JellyToast on February 6, 2009 at 9:46 PM

Seven Percent Solution on February 6, 2009 at 9:21 PM

heh…. well if you are going to dream, might as well dream big. Change the mindset of the blissfully ignorant? Tall task indeed.

Hog Wild on February 6, 2009 at 9:47 PM

It is time to demand senators and congressmen to reside primarily in their home districts as the Constitution intended.

In Bawney Fwank’s case that would have to be the red-light section of the Castro district in SFO.

viking01 on February 6, 2009 at 9:48 PM

I have to think this would never stand up to a court challenge on some kind of Constitutional grounds. Equal Protection? Perhaps Unreasonable Search and Siezure (in a way, it could be said the proposal siezes their pay, I guess)? The ones in favor would probably argue they are just regulating Interstate Commerce, a provision the Constitution actually allows for.

Well, the question of a “court challenge” reduces to this: What does Anthony Kennedy think of it?

Sadly, given the freakishly expansive view of the Commerce Clause, this would stand up to a challenge on those points. Executive compensation limitations of banks receiving federal bailouts is acceptable because it’s a Spending Clause issue; the Congress can put restrictions on the receipt of federal funds that it otherwise wouldn’t be allowed to. Without that tie, though, this would be tougher. Most likely, CEOs would argue freedom of contract (eviscerated in Lochner, IIRC), or a Fifth Amendment “takings clause.” Theory being that the limitations on compensation would amount to a government “taking” of private property. The one problem is that, if all of the money above $500,000 does not pass to the government, then the state technically isn’t “taking” anything.

So, under any normal reading of the Constitution, this is plainly unconstitutional. After 70 years of judges who appointed themselves to the job of philosopher-king, though, it could pass.

Interestingly, a fair number of attorneys earn more than $500,000/year. I wonder if Frank’s proposal would apply to them, or only to people who actually produce wealth?

Roxeanne de Luca on February 6, 2009 at 9:48 PM

“There’s deeply rooted anger on the part of the average American,” the Massachusetts Democrat said at a Washington news conference today.

I’d like to think that he is right, there is a deeply rooted anger. And when the people set out to deal with that anger Robespierre will have nothing on us.

johnsteele on February 6, 2009 at 9:49 PM

Let’s take it all the way…..let’s limit the pay of Senators,Congressman and athletes.

red131 on February 6, 2009 at 9:51 PM

probably been said before…but where’s Dick Armey?

john1schn on February 6, 2009 at 9:54 PM

Barney Frank and Chris Dodd destroyed the world economy.

Mojave Mark on Feb 6,2009 at 9:31PM.

Mojave Mark: I see a movie here,or documantry!

A comedy: A Funny thing Happened on the Way to the Bank!

A Horror: A Horrific Thing Happened on the Way to the Bank!

A Documantary: How Barney Frank used Bill Clinton to write
off housing mortgages to the destute,used
Janet Reno,as the Bank Intimidator,and how
the entire Liberal Party,was banking on this
debaucherous scheme to propel them back into
ABSOLUTE POWER,and run a ‘SCORTCH AND BURN
OPERATION AGAINST ANYONE OF THE RIGHT WHO
GET IN THIER WAY!!Ahem:)

canopfor on February 6, 2009 at 9:55 PM

Barney Frank is simply the product of unprotected anal sex. And Midas, there are a growing number of folks out here just like you waiting for the right moment. And it is closer than our political leaders can ever imagine.

MikeD on February 6, 2009 at 9:55 PM

What is it about Barney Frank that remotely suggests he has something valid to share? His lifestyle is invalid and, well – ‘nuff sed.

ericdijon on February 6, 2009 at 9:56 PM

OK Bawny now that you have a tidy little sum stashed away you want to limit what everyone else makes? You make me want to puke.

tbear44 on February 6, 2009 at 9:57 PM

I’m not even going to say what I think of Barney Frank. All I can say is this: it’s hard for me to wish the same thing on anyone over politics. However, this son of a bitch is attempting to effectively create upper and lower boundaries on pay, which is a giant step towards a centralized, government controlled economy. Bailing out companies? That’s one thing, which can be combated if strive for success and excellence are continued. Limiting what someone will make will ultimately eliminate innovation and the drive to succeed.

In this, Barney Frank is arrogantly, maliciously, and bitterly trying to utterly destroy this nation. I really do hope for him what I refuse to mention.

MadisonConservative on February 6, 2009 at 10:01 PM

Uh oh. What did he mean by capping executive compensation? Just what is it that’s getting capped that is considered some, er, shape of compensation? Is he calling for safe compensation?

ericdijon on February 6, 2009 at 10:02 PM

Tar and feather, people, tar and feather.

If this smarmy crook were held to account for even half of his mendacity and thievery, not only would he never see public office again, he’d probably be in jail.

I’m dead serious, running massive state interventions into the market for the benefit of your boyfriend isn’t just a “conflict of interest,” it’s fraud on an absolutely massive scale – and that’s just one example.

And you know Obama ain’t gonna do anything, he loves crooks.

Merovign on February 6, 2009 at 10:09 PM

Hey,, lets do term limits!

JellyToast on February 6, 2009 at 9:46 PM

I regree with JellyToast, it is now time for ALL POLITICANS to hav term limits!

foxone on February 6, 2009 at 10:10 PM

How ’bout we cap hisd salary, take away his health and pension benefits, and institute term limits.

rlwo2008 on February 6, 2009 at 10:31 PM

As an added benefit of being in Congress cap their total gross pay at $100,000 above their federal pay.

bout68 on February 6, 2009 at 10:42 PM

Tar and feather, people, tar and feather.

Merovign on February 6, 2009

The picture of liars, thieves and hypocrites. What Wall street CEO has done more harm then Barney Frank or Chris Dodd??? Could either of them be responsible to run a convenience store let alone the American economy????

JellyToast on February 6, 2009 at 10:46 PM

Between Franks and Pelosi I cannot choose which one is more dangerous.

They are interchangeable screwballs. Either would fit in nicely in each others home district.

FireBlogger on February 6, 2009 at 10:48 PM

With Bawney Fwank there’s always an embarrassingly perverse communication gap involved. When someone shouted at him to shove the salary cap up his a$$ the senator replied: “Hello sailor.”

viking01 on February 6, 2009 at 10:56 PM

Exit question: Tough talk from Frank or does he really mean it?

I’ll believe it when he cuts the thunderbead and prostate massager funding out of the Stimulus package.

Kid from Brooklyn on February 6, 2009 at 10:57 PM

There is anger on the part of the average American only because you congressmen continue to screw us nine ways from Sunday. And I am sure Barney you know what I mean (wink wink). We have all truly had ENOUGH!!!! Go away and vote yourselves some term limits, you make us all sick.

Gulfcoastconservative on February 6, 2009 at 11:11 PM

Barney the Frank, loser.

Zorro on February 6, 2009 at 11:13 PM

Barney frank has
RAPED fanny
RAPED freddie
Screwed the tax payer
had his gag boyfriend running a male prostitution ring out of a tax payer funded house

and now this FILTH
wants to cap everyone elses pay
so he and all of congress can KEEP making more than all of the ceos

this is a new era of oligarchs
And i now now it is time
to GET RID OF THEM ALL>..

jcila on February 7, 2009 at 12:07 AM

This is a blantant THEFT being committed by
our own congress
AGAINST ALL THE PEOPLE OF THE USA..

ENOUGH of this VILE FILTH
AMerica TO ARMS..

jcila on February 7, 2009 at 12:08 AM

No, Barney’s right. Let’s choose some level of gross compensation — say, $10M/year, and then lets let the Government take 95% of everything beyond that point. Then those very wealthy affected individuals (who tend to be liberals) can ease the tax burden on the middle class and working class. In other words, if there’s going to be a graduated income tax rather than a flat tax, lets have a few more gradations to prevent the creation and maintenance of the aristocracy we currently have.

unclesmrgol on February 7, 2009 at 12:13 AM

GO FOR IT!!

So long as the CEO is the HIGHEST paid person in ANY organization and ya can’t hire your 18 year-old kid to sweep floors and pay them $499,999.00

AND like 1993 taxes, lets make it retroactive!
If you made over $500K in 2008 you MUST turn over ALL monies above $500K for that year!

Ya buddy this will be GREAT!!

I’d pay good money to see the look on Olbermann’s face when told he needs to cough up $6.5 Million dollars! Oh and ya already need to cough up a million just for 09!

Along with al the Obama talking heads!
That tingle in Prissy leg will be a stroke!

How bout that Hollywood crowed!

The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.
Winston Churchill

DSchoen on February 7, 2009 at 12:20 AM

The problem with Bawney Frankfurter is he’s always going in through the out door.

Kini on February 7, 2009 at 12:34 AM

I despise this cretin.

I told my 401(k) adviser that I will be willing to put my money back into stocks when Congress shows it is behaving like adults.

My criteria for that is the day Barney Frank has been removed from his Committee Chair.

That cretin would destroy everything America has been built on. The cities in their favorite BLUE states would collapse after exec limits like he suggests are put in place.

My ptichfork has been sharpened. Just say the date, I’ll show up.

Jimmy Doolittle on February 7, 2009 at 1:37 AM

Where was this giant purple dinosaur and his salary cap back in the 90′s when he was charged with Congressional oversight of Freddie and Fannie and instead, he was practicing his “BDB” techniques with his boytoy, a management type at Freddie Mac?

Gohawgs on February 7, 2009 at 2:26 AM

What’s the matter Barney? Darwinism not good enough for the business world? I can’t imagine why you would be intimidated by real people doing real work for real compensation. How’s your freezer look these days?

Limerick on February 7, 2009 at 2:40 AM

OK, people, are you FINALLY starting to get pissed off enough at these idiots in Congress to actually DO something??? I’d be happy with just voting them out of office, but I’m concerned that they’re about to appoint themselves into power for life.

jdawg on February 7, 2009 at 3:14 AM

OK, people, are you FINALLY starting to get pissed off enough at these idiots in Congress to actually DO something??? I’d be happy with just voting them out of office, but I’m concerned that they’re about to appoint themselves into power for life.

jdawg on February 7, 2009 at 3:14 AM

We can only dream that they would play their hand this early.

DFCtomm on February 7, 2009 at 3:20 AM

Why isn’t Barney Frank in prison?

georgej on February 7, 2009 at 6:05 AM

Hey,, lets do term limits!

I recommend Vince Flynn’s “Term Limits“.

Disclaimer: To anyone that has read the book, I am not advocating for the assassination of Barney Frank. But I would not be sad to see him leave office.

eaglescout1998 on February 7, 2009 at 6:05 AM

Let’s pay Congress for their actual hours worked…which isnt a lot. Then lets cap the salaries the of Hollywood elite…and professional sports players.

haha I still think of Rush’s Dancing Queen.

becki51758 on February 7, 2009 at 7:00 AM

This sh*@ has wings here in Boston. Liberal talk radio (which is everyone that isn’t syndicated around here) is boasting about how the Great Barney is going to level the playing field. They are beside themselves with glee that the rich guy is finally going to get his.
As an Ohioan that moved to Sucks-a-Chusetts 4 1/2 years ago, I am alarmed by this. The kinds of government policies we used to joke about in Ohio as being solely those of the wacks in Boston are now making headway in Ohio and elsewhere. Boston is just a test run and Barney knows this. “Get them used to hearing about it, then hit them over the head with it”. I have absolutely no doubt that as the Bail-Out-a-Palooza wreaks havoc across the country, the left will launch a class war never seen before and salary caps will come up again and again – until he gets them.

gopmom on February 7, 2009 at 7:11 AM

Make all congressional offices salary controlled public service; that is limit all income for said congress beings to $60,000 / year (wouldn’t want to gouge them in those high tax brackets). Expenses should be limited to food stamps — redeemable only in D.C., cots for their offices and a dozen round trip bus tickets to visit their voting districts.

Annar on February 7, 2009 at 7:27 AM

If they would only cap the amount of tax payers money he and his cronies steal to maybe 10-20 million a year I might agree with him.

elifino on February 7, 2009 at 8:25 AM

The bill, which the committee is working on in consultation with the Obama administration, also will require financial institutions that bundle mortgages into securities to share in potential losses. This would give banks and mortgage-specialists an incentive not to make bad loans, he said. Institutions that securitize loans improperly will incur tougher penalties.

“There have been too few constraints on major financial institutions incurring far more liability than they could handle,” Mr. Frank said.

Gee, Barney, you know what else would help?

Holding accountable all the sleazebag lawyers who took those lenders to court in the late 90′s to force them into making those “bad loans” (your words, not mine).

You can start with the sleazeball lawyer sitting in the Oval Office.

Bruce in NH on February 7, 2009 at 8:30 AM

Seriously, the banks had in place all the “incentive” they needed not to make bad loans. It was called RISK ANALYSIS, and it was working just fine, until the Democrats rammed the concept of politically correct banking down their throats.

I have but one request of this socialist cyst on society.

Dear Representative Frank,

Please add my e-mail address to your distribution list, so that I can be notified in advance of the beginning of the People’s Armed Revolution you’re calling for here.

I’d hate to show up late.

Thanks much.

See you then.

~ Bruce

Bruce in NH on February 7, 2009 at 8:33 AM

Exit question: Tough talk from Frank or does he really mean it?

It’s extortion. Get behind the Democrats or their will be hell to pay.

BadgerHawk on February 7, 2009 at 8:34 AM

It is characters like Barney Frank, Christopher Dodd, Ted Kennedy, John Kerry, Harry Reid, Nancy Pelosi and countless others that is the reason why we need term limitation in Congress and we need it right now.

I highly doubt that when the Founding Fathers created the provision that would make serving in Congress a lifetime career for some, they foresaw this foul and self-serving ilk one day stinking up the halls of Congress like they are now.

If the Founding Fathers had foreseen this coming, they would have placed the same term limits on Congress and the Senate that the President now has, and they would have done it without a moment’s hesitation.

pilamaye on February 7, 2009 at 8:35 AM

Pass it and tell the lobbying groups to pound sand.

You accept bailout money, you accept the conditions of the bailout money.

This just sounds like Wall Street is trying to put the blame on Congress for Wall Street’s deeds. No thanks – but you’ve done enough damage playing “master of the universe”. Now is the time you pay for it.

sethstorm on February 7, 2009 at 8:46 AM

I recommend Vince Flynn’s “Term Limits“.

Disclaimer: To anyone that has read the book, I am not advocating for the assassination of Barney Frank. But I would not be sad to see him leave office.

eaglescout1998 on February 7, 2009 at 6:05 AM

I’d be glad to be whomever stops them in their tracks.

Bruce in NH on February 7, 2009 at 8:33 AM

They won’t tell you and will have no issue in pre-empting your participation in any revolt.

sethstorm on February 7, 2009 at 8:52 AM

The picture of liars, thieves and hypocrites. What Wall street CEO has done more harm then Barney Frank or Chris Dodd???

JellyToast on February 6, 2009 at 10:46 PM

All of them, especially those whom have decided to do H1/L1 law abuse.

sethstorm on February 7, 2009 at 8:53 AM

Is this for CEO’s only? What about sales guys? My and several of my peers incomes have exceeded this mark several times over the past 15 years, that’s what we live for. That’s why we take the big risk of commissions over fixed salary.

Insanity.

Pitchfork and torches to Beacon Hill. I’d suggest tar and feathers but I’m afraid Fwank and his boy fwend would actually enjoy it so long as we included gag balls and ass-less chaps.

Alden Pyle on February 7, 2009 at 9:07 AM

Liberal talk radio (which is everyone that isn’t syndicated around here) is

gopmom on February 7, 2009 at 7:11 AM

Welcome to Boston gopmom. Join “The Resistance” at WTKK 96.9 FM: Michael Graham 9:00 AM & Jay Sevrin 3:00 PM.

Be careful, they are monitoring.

Alden Pyle on February 7, 2009 at 9:14 AM

Lets cap hollywood actors salarys at $100,000.00 a year.

Talk about obsene profits.

Rick007 on February 7, 2009 at 9:35 AM

Lets say that no Company or entity that accepts any Federal Aid can’t contribute to any polititions campagn

Rick007 on February 7, 2009 at 9:39 AM

Let’s cap this slobbering pervert’s tenure in congress.

notagool on February 7, 2009 at 10:33 AM

“Barney, Barney, Barney! You couldn’t possibly mean to include companies working on Alterrrrrrrrative Energy – like Generation Investment Management – could you?”
- Algore

“Oprah Winfrey, head of Harpo Productions, was unavailable for comment”

“Across the country, hundreds of celebrities, who are paid through their own production companies, were treated for fainting spells…”

eeyore on February 7, 2009 at 10:43 AM

Welcome to Boston gopmom. Join “The Resistance” at WTKK 96.9 FM: Michael Graham 9:00 AM & Jay Sevrin 3:00 PM.

Be careful, they are monitoring.

Holy crap, there’s HotAir readers in Boston who aren’t me? Hi, guys and gals.

Roxeanne de Luca on February 7, 2009 at 10:50 AM

We used to have a law against communism.

Speakup on February 7, 2009 at 10:53 AM

The Judge said on Fox one day this past week that there is a specific clause in the US Constitution (he named it, but I don’t remember what it is) that forbids Congress from interfering with private contracts. He said that clause made this type of action unconstitutional.

I’ll see if I can find that quote by him….

ladyingray on February 7, 2009 at 1:00 PM

Congress’ salary should be capped at $20/hour, maximum of 40 hours/week.

What’s that, Bwarney? you don’t like that and as a “little person” I should mind my own business?

Yeah, right.

I R A Darth Aggie on February 7, 2009 at 1:14 PM

Anybody smart enough to handle a $500,000 a year job is smart enough to structure a compensation package that get around any maximum salary law written by Congress.

lonesomecharlie on February 7, 2009 at 1:38 PM

“As an added benefit of being in Congress cap their total gross pay at $100,000 above their federal pay.

bout68”
“Congress cap their total gross pay at $100,000”
Do you mean the amount of money these tools collect after they leave office?
Like Dashell getting 1 mill a year to ride around in a car?

DSchoen on February 7, 2009 at 3:03 PM

“Between Franks and Pelosi I cannot choose which one is more dangerous.
They are interchangeable screwballs. Either would fit in nicely in each others home district.
FireBlogger”

Franks.

Pelosi is too stupid to come up with any original ideas “500 million Americans lose their job EVERY MONTH!”

DSchoen on February 7, 2009 at 3:12 PM

Cap sandwich, anyone?

Mark30339 on February 7, 2009 at 3:39 PM

“Anybody smart enough to handle a $500,000 a year job is smart enough to structure a compensation package that get around any maximum salary law written by Congress.
Lonesomecharlie”

Really?

Sean Penn? smart enough to get around a salary law written by Congress?

But ya do have a point!

That’s why we will need an agency to monitor ALL transactions, bank accounts both in and out transactions, as well as off shore banks.

We will need “Life Style Monitors, LSM’s” who can keep an eye on folks to see if their “living beyond their REPORTED means”

This would require household inspections say every other week, The LSM would go into your house and do an “inventory” on all your “stuff” just to make sure your not STILL cheating.

Oh we will also have to change that pesky order thing, ya know “innocent till proven guilty” to “Guilty till proven innocent”.

Thankfully we have patriots like Barney “Ernst Röhm” Frank to make this become a reality!

Happy days are here again!
Ya Buddy!

DSchoen on February 7, 2009 at 4:40 PM

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