Diary

Let The Nationalization Begin!

Via Drudge, President Obama to propose compensation caps on financial services firms to include banks. That ought to help bring back the banking sector and the markets!

Bloomberg reports that the heads of Citibank, Bank of American and JP Morgan are also pointing out the problems this will cause with the recovery. Per the story,

β€œThe work we have all done to try to stabilize the financial system and to get this economy moving again would be significantly set back if we lose our talented people because Congress imposes a special tax on financial services employees,” Pandit said in the memo, whose contents were confirmed by a Citigroup spokesman.

Gabriel Malor at Ace of Spades is half-convinced that this is part of a plan to tank the financial system and set it up for nationalization. It is either that or incompetence at a level we have not seen since the day of Jimmy Carter.

Cross-posted at The Opinionator.