A Dream for a Better World

Executives at Goldman Sachs Group Inc., JPMorgan Chase & Co. and hundreds of financial institutions receiving federal aid aren’t likely to be affected by pay restrictions announced February 15th by President Barack Obama.  The rules, created in response to growing public anger about the record bonuses the financial industry doled out last year, will apply only to top executives at companies that need exceptional assistance in the future.  The limits aren’t retroactive, meaning firms that have already taken government money won’t be subject to the restrictions unless they have to come back for more. Pay caps may provide the political cover the administration needs to deliver additional infusions of capital into the financial sector.