Why the "Pay for Performance Act" Is a Bad Idea

Pay for Performance Act

While it may sound good to restrict pay to banks that are taking government funds (assuming you look past the fact that the government acted outside its constitutional authority with TARP to begin with), and it feeds the populist rage, but it will do nothing to help the economy and will likely harm those banks. By limiting the compensation employees at the banks can receive, the government essentially guarantees that bankers and administrators with the talent to improve the banks will go elsewhere, to banks they can actually get paid well at.