Pretty neat day for banking folks who used to manage their own companies. The White House starting seriously now about how it can change pay and compensation practices across the banking and financial-services industry. The interesting thing....this includes folks who did not receive a penny of federal bailout money.
What they are talking about....is administration and regulatory officials looking at the Federal Reserve's supervisory powers, the power of the Securities and Exchange Commission and moral suasion. They are even hinting that they could do this via legislative efforts....as we kinda already know....the banks and Wall Street will pay off the right folks to ensure nothing stupid happens at that level.
The chief concept of this whole mess? They want loan officers paid on the quality of work they do....and not the volume.
I kinda sat there for a while looking at this idea....quality versus quantity.
I pondered a while and then thought....if this is such a damn good idea...why not make the White House, Senate and House pay situation work the same way. If some idiot barely votes 75 percent of the time and is generally absent from House business....then he ought to be on a separate wage and making less than his buddy down the hallway.
If some Secretary of Commerce screws up big-time....toss in a 10-percent pay loss. If some General does something really stupid....take $3k off his yearly pay.
I think in this case, the White House really has a great idea...but they need to carry it to the next level. The problem is....once you lay this across various levels....I’m thinking a bunch of White House folks, senators and congressmen....will just say “no”, and move on.