Gingrich’s beef with pay caps

Newt Gingrich has some thoughts on today’s news that the Obama administrtion is eyeing changes to Wall Street pay practices, even for non-bailout companies.

newtgingrich When you wake up to “US eyes bank pay overhaul” (wsj page one) you know you are one step closer to a socialist country that simply wont work

The story Gingrich is referring to:

The Obama administration has begun serious talks about how it can change compensation practices across the financial-services industry, including at companies that did not receive federal bailout money, according to people familiar with the matter.

[snip]

Among ideas being discussed are Fed rules that would curb banks’ ability to pay employees in a way that would threaten the “safety and soundness” of the bank — such as paying loan officers for the volume of business they do, not the quality. The administration is also discussing issuing “best practices” to guide firms in structuring pay.