As part of the program, the government plans to offer subsidies, in the form of low-interest loans, to coax private funds to form partnerships with the government to buy troubled assets from banks. But some executives at private equity firms and hedge funds, who were briefed on the plan Sunday afternoon, are anxious about the recent uproar over millions of dollars in bonus payments made to executives of the American International Group. Some of them have told administration officials that they would participate only if the government guaranteed that it would not set compensation limits on the firms, according to people briefed on the conversations. The executives also expressed worries about whether disclosure and governance rules could be added retroactively to the program by Congress, these people said. A spokeswoman for the Treasury declined to comment on the conversations over the weekend.
But some executives at private equity firms and hedge funds, who were briefed on the plan Sunday afternoon, are anxious about the recent uproar over millions of dollars in bonus payments made to executives of the American International Group.
Some of them have told administration officials that they would participate only if the government guaranteed that it would not set compensation limits on the firms, according to people briefed on the conversations. The executives also expressed worries about whether disclosure and governance rules could be added retroactively to the program by Congress, these people said.
A spokeswoman for the Treasury declined to comment on the conversations over the weekend.
NY Times Capitalism searches out the darkest corners of human potential, and mainlines them.
This can only reinforce the perception that the Obama administration is helpless before the power of the new robber barons- and that Geithner is their tool. Capitalism searches out the darkest corners of human potential, and mainlines them.
I should have mentioned that many private equity funds and hedge funds seem to have found a common position to take---no limits on executive compensation, no regulation, or we won't play. Blackmail, pure and simple.
The hedgies and privae equity locusts are helpless, as long as we have the political will to take them down.
Tell them to play ball, and if they refuse they should all be prosecuted for treason and thrown into jail until the next great depression. Peak oil is not an energy crisis. It is a liquid fuel crisis.
