Senator Dodd on a Mission to Crush Talent

Senator Dodd forgets to take medicine

Feb. 17 (Bloomberg) — Wall Street bankers chafing at new limits on executive pay may have to accept the fact that the U.S. government is prepared to remake the nation’s financial system without them.

Bankers and their supporters, mostly executive-pay consultants, say the restrictions championed by U.S. Senator Christopher Dodd will prompt an Exodus of talent. The response from politicians after banks lost $820 billion: So be it.

“Populism has completely taken control of the process,” said Jeff Davis, director of research at Howe Barnes Hoefer & Arnett, a Chicago-based brokerage. “It’s borderline pitchforks in the street.”

Dodd, chairman of the Senate Banking Committee, added the limits to the $787 billion fiscal stimulus bill approved by Congress on Feb. 13. President Barack Obama plans to sign the stimulus bill into law in Denver today, said his spokeswoman, Jen Psaki. Dodd has brushed aside concern the provision would weaken banks by driving away talent, saying there are plenty of potential replacements.