Bailout-Deal Warning: Update #1

My latest information on executive pay-caps and government ownership warrants — which are now being called “equity protection” — is that they would apply to bond sellers, not buyers. (My original warning is here.) I guess that makes it only half as bad. But I must say, it still is bad.

Why should a successful bank — whether large, medium, or small — give up ownership and allow pay-caps for executives?

Even the big guys like BofA and JPMorgan Chase are still solid banks. So is Goldman and Morgan Stanley. And Wells Fargo. And many others.

Why should they agree to this? It just makes the plan unworkable. Sources tell me the Treasury is opposed. Stay tuned for more.