With nothing left to pamper the financial executives at Wall Street, the White House finally succumbed to pressures by calling at least several financial executives to sit down with President Obama at the White House to discuss measures that would iron out the kinks concerning their excessive annual pay, which to many taxpayers are inappropriate at this time when the country is in dire economic recession.
President Obama has ordered pay czar Kenneth Feinberg to meet and discuss with these Wall Street executives to pare down their annual compensation to about 500,000 annually. However, there are loopholes that need to be straighten out in the midst of multi-million lobby money that is expected to block any attempt to make these executives agree with the federal government's terms and conditions.
Among those included in the list are GMAC, Citi Group, General Motors and American International Group (AIG).
According to Feinberg, he would ask these executives to instead settle for a stock options as incentives for their pay cuts, which they can avail on a long-term basis. However, this suggestion is being opposed by some corporate big wigs who claimed that giving millions in compensation to brilliant executives and employees in the financial sector is the best strategy to keep them stay.
With this latest development, there is uncertainty that the financial executives concerned will agree to the conditions set by the White House. Some observers said that the least that these executives can do at the moment is listen to what the White House tell them to fix. But there are visible signs that these Wall Street fat cats, who are already used to this kind of luxuries, cannot just take government's suggestions overnight. The least that they can do to ventilate their grievances is to quit their posts if they can't withstand the heat being imposed by the present administration.
While the unemployment rate reached double digit this year, Wall Street executives have the temerity to wallow in grandeur by getting hefty compensations and bonuses at the expense of the millions of taxpayers' money, most of them are hard up with mortgage payments and other utilities to survive.
An ABC news commentary said: "The payroll of executives need to be cut. For all the money that they are given could employ over a 100 regular workers per executive pay cut. A lot of these executives have caused problems for the banks themselves with bad loans. We need to have the board of directors of the companies to listen to their stockholders about this."
While another reader at ABC news commented: "Who cares if the top executives leave the company? There are plenty of talents to replace them. Oh I forgot, these top execs, the "stars" of the companies, are the same crooks that helped pour the economy down the toilet with their brilliant schemes. Basically the banks are saying that they want to pay excessively high compensation to retain the top crooks so they can again fool the American people and squeeze the last few pennies out of them."
Meanwhile, it is good news that Bank of America has gotten out of the quagmire by repaying back at east 45 billion from the total bailout money it owed the federal government.