Those who moan that capitalism is being undermined by Washington control over Wall Street's excesses seem to forget that it was Wall Street's lavish self-indulgence that required a government tourniquet to stop the fatal hemorrhaging of the U.S. economy.
None of the Street's big players had the wisdom to step in and voluntarily police what had become a bacchanalian orgy of kingly salaries and perks, money-making schemes without any virtue or lasting value to society and in-your-face arrogance toward American wage earners. So tougher new regulations on Wall Street schemes and the offensively extravagant rewards showered on executives are not only necessary, but morally imperative.
The Obama administration is effectively cutting compensation of senior executives in large financial firms that accepted multibillion-dollar bailouts (and thus now in effect work for the government) and requiring government permission if more than $25,000 in special perks (country club memberships and use of private jets) is requested.
Please, no pity for these executives. When Bank of America CEO Kenneth Lewis retires this year, he'll walk away with a pension valued at $53.2 million. This sort of exorbitant profligacy has infuriated laid-off Americans with little more than a few weeks severance to support their families.
Yet, some on Wall Street still don't get it. Some companies not under pay restrictions are planning hundreds of millions of dollars in bonuses for executives for simply doing their jobs.
A few generations ago, the most important rewards for successful executives were pride in achievement and solvent companies.
