Another Proposed Federal Takeover

The Federal Reserve is proposing that they regulate the salaries and bonuses of those working in our financial institutions. They propose regulating the salaries of those in both upper and middle management. Even the salaries of loan officers would be regulated. They propose regulating compensation in banks that took TARP funds and in banks that did not take TARP funds. Where did the Federal Reserve suddenly and magically gain this power to regulate salaries and bonuses?

Should not Congress be protesting this usurpation of power? There was no legislation passed granting this power - Nor would it be constitutional to grant this power. The federal government has no right to control salaries in private companies. This is not Venezuela – yet.

The banks did not make the toxic loans that contributed to the recession because they thought i t was a wise business decision. They made these loans because the federal government required them to make the loans. Bill such as the Community Reinvestment Act (1977) and the Federal Housing Enterprises Financial Security + Soundness Act (1992) required banks to make these toxic loans. The roots of the recession are found in Washington.