Obama Administration Moves Against
Health Insurers, Big Banks

U.S. to Order Steep Pay Cuts
at Firms That Got Most Aid

U.S. to Order Steep Pay Cuts at Firms That Got Most Aid, ©The New York Times, October 21, 2009, by Stephen Labaton, excerpt quoted verbatim:

“WASHINGTON — Responding to the growing furor over the paychecks of executives at companies that received billions of dollars in federal bailouts, the Obama administration will order the companies that received the most aid to deeply slash the compensation to their highest paid executives, an official involved in the decision said on Wednesday.

“Under the plan, which will be announced in the next few days by the Treasury Department, the seven companies that received the most assistance will have to cut the cash payouts to their 25 best-paid executives by an average of about 90 percent from last year. For many of the executives, the cash they would have received will be replaced by stock that they will be restricted from selling immediately.

“And for the 25 best-paid executives, the total compensation, which includes bonuses, will drop, on average, by about 50 percent.

“The companies are Citigroup, Bank of America, the American International Group, General Motors, Chrysler and the financing arms of the two automakers.

“At the financial products division of A.I.G., the locus of problems that plagued the large insurer and forced its rescue with more than $180 billion in taxpayer assistance, no top executive will receive more than $200,000 in total compensation, a stunning decline from previous years in which the unit produced many wealthy executives and traders.

“In contrast to previous years, an official said, executives in the financial products division will receive no other compensation, like stocks or stock options.” ….

Read the full article, here.

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Democrats Go After Anti-Trust Exemption for Insurers

Democrats Go After Anti-Trust Exemption for Insurers, © Associated Press; Truthout, October 21, 2009, by David Espo (AP), excerpt quoted verbatim:

“Washington – Democrats launched a drive at both ends of the Capitol on Wednesday to strip the insurance industry of its decades-old exemption from federal antitrust laws, part of an increasingly bare-knuckled struggle over landmark health care legislation sought by President Barack Obama.

“If enacted, the change would put an end to “price-fixing, bid-rigging and market allocation in the health and medical malpractice” insurance areas, said Sen. Patrick Leahy, D-Vt., chairman of the Senate Judiciary Committee. Leahy said he would seek a vote on the plan when the Senate debates health care legislation in the next few weeks.

“Leahy made his comments at the same time the House Judiciary Committee voted 20-9 to end an industry exemption that dates to 1945. Three Republicans supported the move.”

Read more on the Democrats call for stripping the anti-trust exemption for health insurors, here.