A congressional oversight committee opened an investigation yesterday into whether the Obama administration is circumventing a law that limits lavish pay for executives at firms benefiting from the $700 billion federal bailout....A few points. First, a Democratic Congress is providing oversight three months into a new Democratic administration. When did the Republican Congress ever investigate anything that the Bush administration did. Ever? So, regardless of whether we like Democrats investigating Democrats, this is a good thing for our democracy and for our country's general well-being.
The investigation comes two days after The Washington Post reported that the administration has engineered new bailout programs in a way that it believes will allow firms benefiting from the initiatives to avoid congressional restrictions that curb executive pay and require companies to turn over ownership stakes to the government.
Some experts and congressional staff have questioned the legality of that approach.
Second, this issue, which we reported on a few days ago, about the administration supposedly looking for ways to circumvent the recently passed pay restrictions, is all the more evidence that someone inside the executive branch simply does not get it. Was the recent blow-up over AIG not evidence enough of how strongly the public feels on this issue?
And finally, Geithner (and Summers). Part of the reason - probably the main reason - people are willing to believe stories like this, and that Congress is willing to investigate stories like this even when they concern our own administration, is because of the presence of Geithner and Summers. People would likely give Obama the benefit of the doubt. Not likely with the other two. They will continue to be a lightning-rod for trouble.
