Start the clock to see how long it takes the Wall Street freeloaders to file lawsuits, spending TARP money for attorneys along the way, of course. While this is good news - fair news, really - it's disturbing to read how ill equipped Treasury is to deal with this very important and very costly program. It remains unclear what part of "$1 trillion" Geithner doesn't think is important enough to hire more than 10 people to administer oversight. Unfortunately, Geithner does not appear to be improving though at least the Treasury legal team is providing decent news.
Treasury Department lawyers have determined that firms participating in a $1 trillion program to relieve banks of toxic assets could be subject to limits on executive compensation, contradicting the Obama administration's previous public position, according to a report to be released today by a federal watchdog agency.Let's hope it's Geithner who is wrong on his previous statement. Sooner or later he is going to need to step it up or move on.
The disclosure comes amid a congressional investigation into whether the administration is abiding by a law limiting lavish pay for executives at firms that have benefited from the $700 billion bailout for the financial system.
Speaking last month about the initiative to buy toxic assets, Treasury Secretary Timothy F. Geithner said, "The comp conditions will not apply to the asset managers and investors in the program."
