Well, it wasn’t long before Barney Frank, the Dem House Financial Services Committee Chairman, came up with a solution to Corcoran’s objection:
One assumes that generously compensated Hollywood stars and athletes should also start worrying. And even worse:
[Frank] 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.That’s rich. The reason so many "financial institutions faced too much exposure", and precipitated the current financial crisis, is that they were responding to government legislated coercion to make risky loans to people that couldn’t afford them.
Wonderful! The solution to a problem caused by socialist policy is more draconian socialist policy.
Furthermore: The comments to Corcoran’s piece appear, with a couple of exceptions, to be completely ignorant of the US government role in the meltdown laying the blame entirely on the bankers. Most of the lame-brains seem to think that more government interference in the banking system is a good thing. It’s as if the FP comments thread was hijacked by the rabble babble crowd.