The Shock Doctrine

Lobbyists Push for Blank Check Bailout Package Free of Regulations

Elizabeth Williamson , Wall Street Journal, September 20, 2008

"House Republican staffers met with roughly 15 lobbyists Friday afternoon, whose message to lawmakers was clear: Don't load the legislation up with provisions not directly related to the crisis, or regulatory measures the industry has long opposed.

"'We're opposed to adding provisions that will affect [or] undermine the deal substantively,' said Scott Talbott, senior vice president of government affairs at the Financial Services Roundtable, whose members include the nation's largest banks, securities firms and insurers....

"Brokerage firms are fighting limits on executive compensation for firms that participate in the package, saying that particularly in an industry under siege, the limits will hurt their ability to find and retain top brass. The industry could lose that one: proposals to limit executive pay enjoy bipartisan support and backing from the Republican and Democratic presidential candidates."