I really have no problem with executives getting bonuses when they do a good job. But when they apply for government assistance, by definition they aren't perfoming up to standards that merit extra pay. It's really not a tough concept to understand, but apparently it's over the heads of our elected representatives.

Washington Post:

Congressional efforts to impose stringent restrictions on executive compensation appeared to be evaporating yesterday as House and Senate negotiators worked to fine-tune the compromise stimulus bill.

Provisions to impose a penalty on banks that paid hefty bonuses and to cap pay at $400,000 for all employees at firms applying for additional government funds did not survive the compromise, sources said.

The situation was in flux last night, but provisions in the Senate bill that called for a ban on bonuses for all companies receiving government funds also appeared to be headed to the chopping block, congressional sources said.

DOWNLOAD (28)

PLAY (71)

Rachel Maddow talks to Sen. Bernie Sanders who was the one that first came up with the idea of limiting executive pay. Sanders also feels we need to have a real investigation into who caused the banking crisis and that the TARP oversight committee should lead it.

President Barack Obama announcing new rules to curb executive pay for bailed out companies.

Compare and contrast - I'm sure the Senate's southern caucus is as upset about this as they are about auto workers making $28 an hour:

Congress wanted to guarantee that the $700 billion financial bailout would limit the eye-popping pay of Wall Street executives, so lawmakers included a mechanism for reviewing executive compensation and penalizing firms that break the rules.

But at the last minute, the Bush administration insisted on a one-sentence change to the provision, congressional aides said. The change stipulated that the penalty would apply only to firms that received bailout funds by selling troubled assets to the government in an auction, which was the way the Treasury Department had said it planned to use the money.

Now, however, the small change looks more like a giant loophole, according to lawmakers and legal experts. In a reversal, the Bush administration has not used auctions for any of the $335 billion committed so far from the rescue package, nor does it plan to use them in the future. Lawmakers and legal experts say the change has effectively repealed the only enforcement mechanism in the law dealing with lavish pay for top executives.

At least we've laid one myth to rest. It's never been that BushCo is incompetent. Clearly, they're very focused and directed when it comes to the economic privilege of the upper classes.