It seems to be open season on bonuses--much of which is understandable. The public is not happy with banks on the government dole paying out billions in bonuses. No wonder one senator, Clair McCaskill, has proposed legislation that would cap incentive pay at $400,000 at banks receiving TARP funds. That's the amount the president makes. Breakingviews notes bonuses are a "pillar of the meritocratic capitalist system, which, despite recent failures, has mostly served democratic societies well." So the issue may be how to prevent abuses without getting rid of the system all together. Lots of proposals are out there. Banks have to get their houses in order. You certainly don't want legislation in this area. But more abuses all but guarantee it.

For more:
- here's the Breakingviews article

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