The Wall Street Journal reports (subscription required) that "Administration officials on Sunday criticized Wall Street banks over their high compensation packages and their lobbying against plans to tighten financial regulations. But the administration's tone appeared muted compared with attacks made earlier in this year, as Democrats -- with an eye toward the 2010 midterm elections -- seek to put a positive spin on recent economic developments."
It's easy to understand why the Democrats are toning down the rhetoric: They passed an unprecedented corporate welfare package, and pledged to clamp down on compensation practices that encourage excessive risk. Then Obama appointed an executive pay czar who doesn't have any real power and, aside from begging Ken Lewis to toss back a few scraps to create the illusion of a crackdown, the Democrats have done literally nothing to curb compensation practices at firms that are existing on the taxpayer dime.
The point is this: Because so many of these financial companies would have ceased to exist without the support of the Democratic Congress and White House, there's really no excuse for the Dems not cracking down on this stuff. So all the shrill complaining about excessive pay should be seen for what it is: transparent populist rabble-rousing going into an election year.
Ask yourself: If Democrats haven't done anything about CEO pay yet, when are they going to?
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