Barney Frank’s bill will control salaries of ALL employees of EVERY company that took bailout money.


Barney Frank’s bill will control salaries of ALL employees of EVERY company that took bailout money.

Bernanke Testifies Before House Financial ExyVBdE46H_l siren

Barney Frank has quietly introduced a bill that will control the salaries of every employee of companies that took government bailout money. The DC Examiner reports here.

Who would have guessed that was coming? Wait – we did here and here.

in a little-noticed move, the House Financial Services Committee, led by chairman Barney Frank, has approved a measure that would, in some key ways, go beyond the most draconian features of the original AIG bill.

The new legislation, the “Pay for Performance Act of 2009,” would impose government controls on the pay of all employees — not just top executives — of companies that have received a capital investment from the U.S. government. It would, like the tax measure, be retroactive, changing the terms of compensation agreements already in place. And it would give Treasury Secretary Timothy Geithner extraordinary power to determine the pay of thousands of employees of American companies.

Who gets to decide your salary?

In addition, the bill gives Geithner the authority to decide what pay is “unreasonable” or “excessive.” And it directs the Treasury Department to come up with a method to evaluate “the performance of the individual executive or employee to whom the payment relates.”

Is this bill out of committee? 

The bill passed the Financial Services Committee last week, 38 to 22, on a nearly party-line vote. (All Democrats voted for it, and all Republicans, with the exception of Reps. Ed Royce of California and Walter Jones of North Carolina, voted against it.)

When will it reach the House for a vote?

The legislation is expected to come before the full House for a vote this week, and, just like the AIG bill, its scope and retroactivity trouble a number of Republicans. “It’s just a bad reaction to what has been going on with AIG,” Rep. Scott Garrett of New Jersey, a committee member, told me. Garrett is particularly concerned with the new powers that would be given to the Treasury Secretary, who just last week proposed giving the government extensive new regulatory authority. “This is a growing concern, that the powers of the Treasury in this area, along with what Geithner was looking for last week, are mind boggling,” Garrett said.

Now what did George Carlin say about fascism? Oh yes:

“when fascism comes to this country, it won’t be with jack-boots, it will be with these sneakers with lights on them-the happy button, the smiley button on their shirt, and it will be a friendly guy shaking hands…”

I think he was right.