Slashing Salaries

" Here in New York after months of public outrage in Washington warnings the Obama administration is now moving. To cut the pay for the top guys of the companies that took big bailout stop gals too for that matter. That includes Bank of America AIG General Motors and Chrysler are among the few others. Mike Emanuel is tracking the story line the lawn of the white house on the north side. Mike Hsu where things stand on slashing salaries -- to kick in the White House make this happen. It's not even the White House bill we are told that the pays. Top executives at those companies you mentioned. Are going to see a drastic cut their salaries and a lot of their compensation is going to be deferred to stock. As much as 90% stock and stock they can't sell right away so the bottom line is the executive snell. That their long term financial future is tied to the success of the company long term. And what they're saying is that if you took government bonds a taxpayer money to bail out your company. The rules have to change -- Mike he sees it pays are doing this and that we remember his. His name fibers from the the fall out of 9/11 when he was responsible for about compensation. Are you saying the white -- house that had no involvement in this decision. What we've been told is that Kenneth Feinberg. Essentially brief Treasury Department officials he's assigned to the Treasury Department. He's been given a lot of leeway in terms of figuring this out but the bottom line is. Knowing that the administration did not think it was proper for these top executives to be getting. Huge paid days when -- bailed out at a very difficult time for their companies so. Feinberg told Treasury Department officials the president did not have to sign off on this. And it is Feinberg calling he's gonna talk to reporters battered early this attitude to more questions -- that the companies that they act these exit. The executives at this company today this was coming. People I've talked to here say that this should be no surprise to those executives that -- it's been talking to them all along saying look the rules are changing as long as you have taken the fines -- not repaid those bonds. The bottom line is that compensation is going to change I should note that some of the financial firms that did get the bail -- funds that every paid their loans are not subject to these rules bill."

" Mike one more thing here I don't know how much of an answer you have on this you go back ten years and -- particles were -- the pressure during the Clinton Years and Fannie and Freddie Mac. We're trying to make loans more available to more people probably didn't have the credit worthiness to get the home that they got eventually based on that loan. It is the much focus on that Washington now. I in terms of making sure that the loans are only given to people who can pay them back -- understand that congress and politicians put the pressure on these companies to make loans more available. Which you could say led to the fallout that we've experienced."

" Plus uninteresting because you've heard from the Obama administration in recent days frustration because they feel like small businesses that hire people that really drive job growth this kind people. In this country have not been able to get the loans they need and so we saw the president yesterday go out and talk about. Trying to free up lending to smaller businesses so they can hire more people but they also say they don't want to go back to the point where it's. Irresponsible lending and ultimately putting the taxpayers on the hook you were New Jersey for that was -- thank you right back of the White House and it makes."