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The Tampa Tribune

Published: February 8, 2009

Obama Caps Executive Pay Tied To Bailout Money

WASHINGTON (AP) - President Barack Obama on Wednesday imposed a $500,000 cap on senior executive pay for the most distressed financial institutions receiving taxpayer bailout money and promised new steps to end a system of "executives being rewarded for failure."

Obama announced the unusual government intervention into corporate America at the White House, with Treasury Secretary Timothy Geithner at his side. The president said the executive-pay limits are a first step, to be followed by the unveiling next week of a sweeping new framework for spending what remains of the $700 billion financial industry bailout that Congress created last year.

The pay limit comes amid a national outcry over huge bonuses to executives who head companies that seek taxpayer dollars to remain afloat. The demand for limits was reinforced by revelations that Wall Street firms paid more than $18 billion in bonuses in 2008 amid the economic downturn and the massive infusion of taxpayer dollars.

Lawmaker Says SEC Hindering House's Madoff Probe

WASHINGTON (AP) - House lawmakers on Wednesday accused the Securities and Exchange Commission of impeding their probe into the agency's failure to uncover the alleged $50 billion Bernard Madoff fraud.

The clash between lawmakers and high-ranking SEC officials at a House Financial Services subcommittee hearing came after the man who waged a decade-long campaign to alert the regulators to problems in Madoff's operations denounced the agency for its inaction. Whistleblower Harry Markopolos also said he had feared for his physical safety and would turn over new evidence that Madoff had not acted alone.

In loud, angry exchanges, lawmakers threatened to issue subpoenas to SEC officials to compel their testimony in the case.

Congress Postpones Digital TV Transition To June

WASHINGTON (AP) - Congress is giving consumers four more months to prepare for the upcoming transition from analog to digital television broadcasting.

The House on Wednesday voted 264-158 to postpone the shutdown of analog TV signals to June 12, to address growing concerns that too many Americans won't be ready in time for the Feb. 17 deadline that Congress had set three years ago. The Senate passed the measure unanimously last week and the bill now heads to President Barack Obama for his signature.

The change is being required because digital signals are more efficient than analog, and ending analog will free up valuable space in the nation's airwaves.

The delay is a victory for the Obama administration and Democrats in Congress.

Stocks Fall On Worries About Consumer Companies

NEW YORK (AP) - Wall Street is now worrying about the companies usually seen as safe havens.

After an early rally Wednesday, investors succumbed to concerns about disappointing earnings and the market ended the day with a loss. Falling consumer stocks weighed most heavily on the Dow Jones industrial average, which slid 122 points. Meanwhile, the tech-focused Nasdaq composite index showed only a moderate retreat.

Fourth-quarter numbers from Kraft Foods Inc., Walt Disney Co. and Time Warner Inc. provided the latest reminder of the economy's struggles. The weaker-than-expected reports and a profit warning from Costco Wholesale Corp. left investors fearing that consumers are cutting back even more than most analysts thought.

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