This is what Barney Frank, the Chairman of the US House of Representatives Finance Committee, said to top American bankers. The rest of what he said is worth quoting. “And they are starting to hate us because we’ve been hanging out with you. You’ve got to help us deal with that”.
The same is true in Ireland now. But the penny has not dropped with our government in the manner that has with President Obama. The proposals from the US are a clear sign of what needs to happen in Ireland.
- cap pay for top executives.
- executive stock cannot be sold or liquidated until government funds are repaid.
- tough reporting guidelines on spending perks.
- restrictions on bonuses and ‘golden parachutes’.
This just must happen when the banking capitalisation legislation comes into the Oireachtas.