Can you imagine the anxiety in executive offices all across the country? Why is that you ask? The Obama Administration wants to give the SEC new powers on executive pay by forcing firms to let shareholders vote on executive pay and make executives who set pay schedules more independent.

Today's proposal, which is subject to Congressional approval, would cover all companies. The administration will also name a "special master" to monitor compensation plans for companies receiving government assistance.

Continue reading Will the SEC get new powers on executive pay?

Will the SEC get new powers on executive pay? originally appeared on BloggingStocks on Wed, 10 Jun 2009 18:00:00 EST. Please see our terms for use of feeds.

Continue reading House Speaker Pelosi wants 1933 style investigation of Wall Street

House Speaker Pelosi wants 1933 style investigation of Wall Street originally appeared on BloggingStocks on Wed, 22 Apr 2009 15:30:00 EST. Please see our terms for use of feeds.

Continue reading Today's technical outlook: Wall Street fails Geithner's plan

Today's technical outlook: Wall Street fails Geithner's plan originally appeared on BloggingStocks on Wed, 11 Feb 2009 09:30:00 EST. Please see our terms for use of feeds.

Senator Chris Dodd (D-CT) wants General Motors Corp. (NYSE: GM) CEO out and thinks a merger between Chrysler and GM makes sense. I am happy to hear him say that because I suggested those ideas as part of my six point restructuring plan for the auto industry. The difference is that when Dodd says this, he actually has some power to make it happen.

This morning on Face the Nation, Dodd said, "You've got to consider new leadership. [Wagoner] has to move on." Moreover, when asked if a change in leadership should be a condition of a bailout, Dodd said, "I think it is going to have to be part of it." Dodd also said, "Chrysler, is, I think, basically gone, probably ought to be merged."

This sounds like progress to me. If only Congress could push the auto industry to follow the other four parts of the restructuring plan, that would be great. However, my plan left out an important point -- even if the industry cuts unprofitable products and the related dealerships and reduces pay and benefits it will still need to agree on how much of a haircut the bondholders will need to take in a restructuring.

Nevertheless, Dodd's comments on Face the Nation represent good progress.

Peter Cohan is president of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

Dodd wants GM's CEO out and GM/Chrysler merger originally appeared on BloggingStocks on Sun, 07 Dec 2008 14:42:00 EST. Please see our terms for use of feeds.

It's official: Main Street does not believe that Wall Street deserves a $700 billion rescue from Congress.

By a margin of 55% to 31% in a Bloomberg/Los Angeles Times poll, American said that they don't believe the government should "bail out private companies with taxpayer dollars, even if their collapse could damage the economy," according to Bloomberg News. That's a stunning rebuke to the Bush administration.

Though Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke are thumping their chests demanding that Congress act immediately to head off the worst financial crisis since the Great Depression, members of Congress are not so sure. Senate Banking Committee Chairman Chris Dodd (D-CT) indicated to reporters yesterday that passage of the bill this year was not a sure thing. Maybe that's political posturing, but it should scare investors nonetheless.

Democrats and Republicans are getting hammered by outraged constituents questioning why the government should bail out sleazy Wall Street bankers and not lift a finger to help homeowners hurt by the credit crunch. The American people have nothing against people getting rich. They do resent those, however, those who they believe cut corners, which is exactly how Wall Street got into this mess. Anti-bailout sentiment is so thick you can cut it with a knife.

Continue reading The American people to Wall Street: Drop dead

The American people to Wall Street: Drop dead originally appeared on BloggingStocks on Wed, 24 Sep 2008 11:35:00 EST. Please see our terms for use of feeds.

Democratic congressional leaders do not think the Fed's new mortgage rules go far enough and have indicated that they are considering taking power away from the Fed when it comes to protecting consumers, according to a story in today's Wall Street Journal. Senator Chris Dodd, Chairman of the Senate Banking Committee and one of the key leaders on this issue, told the Journal that the Fed's moves are a "clear signal that legislation is necessary to help protect homeowners from abusive and predatory lending practices." He also indicated that he is considering reexamining legislation he introduced last week to take power away from the central bank when it comes to consumer protection.

Rep. Barney Frank, who is chairman of the House Banking Committee, wasn't any happier with what he heard form the Fed. He told the Journal, "We now have confirmation of two facts we have known for some time. One, the Federal Reserve System is not a strong advocate for consumers, and two, there is no Santa Claus. People who are surprised by the one are presumably surprised by the other."

Bankers, seeing the writing on the wall and hoping that the Fed's changes will pacify critics, primarily supported the new rules. According to the Journal, the American Financial Services Association called the Fed's rules "measured" and the Independent Community Bankers of America said it was "an important step." But, the powerful American Bankers Association still hopes it can sway the Fed to ease the rules. It said some parts of the proposal were too rigid and "could make it harder for bankers to tailor products for their customers."

Continue reading Lawmakers hostile toward Fed's new mortgage rules

Lawmakers hostile toward Fed's new mortgage rules originally appeared on BloggingStocks on Wed, 19 Dec 2007 09:28:00 EST. Please see our terms for use of feeds.