From Blue Crab Boulevard we see the first subtle signs of panic from the Obama administration over the likely repercussions of letting Congressional Democrats attempt to scapegoat Wall Street for their own sins.
Obama Seeks to Soften the Punitive Legislation
WASHINGTON — The Obama administration wants to soften the impact of bills speeding through Congress that would impose heavy new taxes on Wall Street bonuses. But some potential allies in the Senate are reluctant to cooperate, fearing the political consequences of watering down the legislation.
Financial-industry officials launched a campaign Friday to fight back but are finding their hands tied: Anti-Wall Street sentiment following the American International Group Inc. bonus payouts is making it difficult to reach once-friendly lawmakers to make their case. Key senators and their staffers, nervous about appearing to support the industry, are refusing all meetings, and, in some cases, turning away phone calls. “Unless you have a pitchfork and a noose nobody’s listening to you” on Capitol Hill, said one financial lobbyist.
The White House has yet to publicly criticize the bonus tax proposals. But administration officials say privately they are concerned the House and Senate bills could lead to an exodus of employees or whole companies from the Troubled Asset Relief Program, known as TARP, as well as other government-sponsored financial rescue efforts.
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