The White House pledged action against irresponsible bonuses for executives at bailed-out Wall Street companies as a Democratic senator unveiled legislation to limit their compensation to $400,000 a year. Sen. Claire McCaskill (Democrat Missouri) proposed a law last week that would prevent executives from making more money than the US president until their companies no longer rely on the US$700B Troubled Asset Relief Program (TARP). “I am mad,” the Democrat from Missouri said. At the White House, Obama’s spokesman said the president’s upcoming plan for financial stability also would address executive compensation and bonuses. Obama last Thursday said recent Wall Street bonuses, given the current situation, were “shameful.” various experts have said the US$700B already allocated to TARP will not be enough. A senior Republican senator, Charles Grassley of Iowa, agreed.
US business group opposes “Buy American” plan
A top USA business group stepped up efforts last week to kill a “Buy American” provision that has angered USAs trading partners, and the White House said it was reviewing its position on the measure. “Some have slammed the USC hamber for opposing ‘Buy American’ provisions, calling our position ‘economic treason,’” Thomas Donohue, president of the U.S. Chamber of Commerce said in a statement. “Try ‘economic patriotism’,” he said. “Such provisions would cost American jobs, trigger retaliation from our trading partners, slow economic recovery by delaying shovel-ready infrastructure projects and cede our leadership role as a long-standing proponent of free and fair trade and global engagement.” The House of Representatives approved the measure last week as part of an US$825B bill to restart the US economy. In the House bill, the “Buy American” measure would require all public works projects funded by the stimulus package to use only US made iron and steel.European steelmakers object, saying that would violate US commitments under the World Trade Organization’s government procurement pact. Other critics say that is less than clear cut and could depend on how the measure was implemented. Several leaders at the World Economic Forum in Davos, Switzerland warned that national moves to counter the economic crisis might lead to protectionism.
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