One of the hooks in the Government bailout program was to control executive compensation, but at the last minute the Bush administration changed the terms by inserting one sentence in the Congressional agreement. The change stipulated that the penalty clause in the agreement would be invoked only to those firms who received bailout funds by selling troubled assets to the government in an auction, which is the way that the Treasury department has said that it planned to use to disburse the money. This created a massive loophole because to date none of the money disbursed has gone through the auction markets at all.
Once again the taxpaying population has been sold down the river because over half the money has been disbursed so far and the government has no real means of monitering executive compensation at the firms who have benefited.
Joe
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