Saturday, October 31, 2009

Obama Pay Czar: Purpose and Prospects

In the attached Cato Institute podcast Mark A. Calabria discusses the purpose and prospects behind President Obama's Pay Czar Kenneth Feinberg.

President Obama has appointed Feinberg with the responsibility for oversight, in conjunction with the Dept. of Treasury, over the compensation of senior executives of the seven companies who have received TARP funding. The companies are Citigroup, Bank of America, AIG, GM, Chrysler and the financing arms of GM and Chrysler. Goldman Sachs, JP Morgan Chase and Morgan Stanley also received tens of billions of dollars in loans and loan guarantees from the government, but because they have returned the loans they are no longer under any pay restrictions.

Mr. Calabria addresses the origins of the congressional authority granted to the Obama administration to have this oversight, the political aspects, and his perspective as to whether this authority could possibly be extended to non-bank, non-TARP debt companies.
Mark A. Calabria, Ph.D. is Director of Financial Regulation Studies at the Cato Institute. Before joining Cato in 2009, he spent six years as a member of the senior professional staff of the U.S. Senate Committee on Banking, Housing and Urban Affairs. In that position, Calabria handled issues related to housing, mortgage finance, economics, banking and insurance for Ranking Member Richard Shelby (R-AL). Prior to his service on Capitol Hill, Calabria served as Deputy Assistant Secretary for Regulatory Affairs at the U.S. Department of Housing and Urban Development, and also held a variety of positions at Harvard University's Joint Center for Housing Studies, the National Association of Home Builders and the National Association of Realtors. He holds a doctorate in economics from George Mason University.

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