President Obama is cutting the paychecks of all failing banks CEO and executives. Today, President Obama laid out some new rules that any bank that receives government aid will have executive salaries capped at $500,000.Per Fortune.com
The guidelines prohibit payments above the $500,000 threshold in anything but company shares that must be held until the government's investment has been repaid.The rules will apply foremost to companies that receive so-called exceptional aid from the government in the future.
The pay rules come amid a fury in Washington over the huge bonuses handed out by Wall Street firms that were on life support before the government stepped in last fall. President Obama and Secretary of Treasurer Tim Geithner saids this is necessary to restore trust in the financial system again.
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