Thursday, October 22, 2009

Unconstitionally Appointed 'Pay Czar' Dictates Pay for Bank CEOs

ABC News' Matthew Jaffe reports: After the Obama administration's pay czar Kenneth Feinberg pushed outgoing Bank of America CEO Ken Lewis to return the $1 million he has made so far this year and forego the $1.5 million he is set to make next year, the White House today called Feinberg a "forceful advocate" for American taxpayers. (Read article on ABC Web Site here).

I am in favor of limiting the salaries of CEOs of any company, bank or otherwise, that have received TARP funds. However, a czar, especially one that was unconfirmed, should not be making unconstitutional demands on limiting the salaries of company executives.
John Harrison, a professor at the University of Virginia School of Law, said czars have no legal power and therefore do not violate the Constitution and would not need to be confirmed by Congress.

I would agree if Feinberg is only making 'suggestions' and can not legally enforce his demands. Sen. Susan Collins, R-Maine, sent a letter to Obama last month raising questions about his appointed czars.
The letter, co-signed by five other Senate Republicans, said 18 “czar” positions, which have not been confirmed by the Senate or established by law, fall into a gray area that raises “serious issues of accountability, transparency and oversight” and circumvents Congress’ “constitutionally established process of ‘advise and consent.’”
Sen. Collins questions constitutionality of czars Click here for story.

Arbitrary decrees by unconfirmed czars establish dangerous trends. The Obama administration should use constitutionally legal means of controlling the salaries of CEOs of companies receiving TARP funds.

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