I’m afraid I don’t have much analysis to add, but I think this tear-jerker from the Post-Dispatch speaks for itself:
Why us? That’s the cry from St. Louis bankers who find their bonuses capped by the new federal stimulus bill.
Like several St. Louis bankers, Gary Douglass, CEO at Pulaski Bank, complains that the law designed to limit excess on Wall Street is snagging banking’s small fry as well.
Yes, indeed, the provision that Senator Dodd inserted into the stimulus that limits the bonuses of banks that accepted bailout money to %50 of base pay. And this effects not only big, Wall Street Banks, but also poor, starving “little guys.” And why did the little guys decide to take the bailout money despite the extreme poverty such restrictions would impose on their lives? For the people, you see, for the people:
Executives at Pulaski and Enterprise say they took the federal money even though they didn’t need it, because the extra capital would let the banks expand their lending. Much of the money went to banks that regulators consider healthy, they note.
The reminds me of a comment I saw on a blog yesterday (I can’t remember where), that invokes the image of a poor, grisled banker standing on a street corner with a sign that reads, “Will destroy economy for food.”