June 24, 2009
We're From The Government
-- And we're here to help!
Citi has to raise salaries for retention, because of restrictions on bonuses. AP:
NEW YORK -- Citigroup Inc. is increasing base salaries for many of its employees as it restructures its compensation program amid new restrictions on bonus payments.
Of course, salaries are paid irrespective of personal or corporate performance, so this will be a drag on Citi's balance sheet and give the firm less flexibility to manage labor -- but at least there will be no embarrassing (to Congress) bonus stories.
Ahh, let's see, what can we fix next? Chairman Barney Frank has a great idea: lower the standards for Fannie and Freddie to underwrite Condo loans. What a brilliant idea. WSJ Ed Page:
Back when the housing mania was taking off, Massachusetts Congressman Barney Frank famously said he wanted Fannie Mae and Freddie Mac to "roll the dice" in the name of affordable housing. That didn't turn out so well, but Mr. Frank has since only accumulated more power. And now he is returning to the scene of the calamity -- with your money. He and New York Representative Anthony Weiner have sent a letter to the heads of Fannie and Freddie exhorting them to lower lending standards for condo buyers.
Imagine what these people could to health care -- no, wait, you don't have to! They're already running the VA. Take it away, AP:
WASHINGTON -- The chairman of the Senate Veterans Affairs Committee is calling for more centralized control of the VA medical system after recent breakdowns in cleaning colonoscopy equipment exposed thousands of veterans to the risk of contracting HIV and other infections.
Don't thank them -- it's all in a day's work for The Government! We're from the government, and here to help. Posted by John Kranz at June 24, 2009 10:17 AM