The President’s solution for an ineptly-regulated financial system?  More regulation, silly rabbit:  From The New York Times, Administration Seeks Increase in Oversight of Executive Pay

WASHINGTON — The Obama administration will call for increased oversight of executive pay at all banks, Wall Street firms and possibly other companies as part of a sweeping plan to overhaul financial regulation, government officials said.

The outlines of the plan are expected to be unveiled this week in preparation for President Obama’s first foreign summit meeting in early April.

Officials said the proposal would seek a broad new role for the Federal Reserve to oversee large companies, including major hedge funds, whose problems could pose risks to the entire financial system.

It will propose that many kinds of derivatives and other exotic financial instruments that contributed to the crisis be traded on exchanges or through clearinghouses so they are more transparent and can be more tightly regulated. And to protect consumers, it will call for federal standards for mortgage lenders beyond what the Federal Reserve adopted last year, as well as more aggressive enforcement of the mortgage rules.

This time it will work, because the regulators will be incorruptible.  And the competence level in Washington has never been higher.  And the Federal mandate to get housing to people who couldn’t afford it is, repeat after me,  NOT TO BLAME for the financial meltdown.

Speaking of corruption, and contrary to the youthful Fox and Friends pundits who this morning were questioning how government control of salaries could even be enforced, I have five words:  Nixon’s wage and price controls.  There is an upside to being old, and Google is a great aid to memory.  I was a secretary at Illinois Bell Telephone Company (which is long gone) in 1971, responsible for keeping paper payroll records up to date for the employees in my Division.  (No computers then.)  The point of this trip down memory lane?  Contractually-mandated wage increases were frozen:  not just greedy, evil management’s, but union workers too. This has been done before, and can be done again.

Scrappleface says, why stop with financial executives?  Obama to Limit Pay for Wall Street, NFL, NBA, MLB

With the debate over AIG executive bonuses nearly bringing official Washington to a standstill in the past three weeks, the Obama administration today expanded its plan to control Wall Street executive pay, adding provisions to limit compensation for star performers in the National Football League (NFL), National Basketball Association (NBA) and Major League Baseball (MLB).

“Some of these sports stars, like AIG execs, have negotiated sweetheart deals paying them millions of dollars, and yet they lose games,” said White House spokesman Robert Gibbs. “The president shares the outrage of the American people at these obscene salaries and bonuses. There’s nothing that makes the little people feel littler than the thought of these fat cats getting fatter just because that have specialized skills that are in high demand in a free-market economy.”

Indeed, the White House released a recent poll showing that 75 percent of Americans answered ‘Yes’ to the following question: “Do you believe President Obama should personally limit the compensation of anyone who earns a lot more than you do?”

Read the rest at the link.

Scrappleface is satire, but we’ve seen satire become reality this past week.  Laugh while you still can.

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