Treasury Secretary Timothy Geithner wants the authority to decide the salary for each employee who works at any company that received government funds during any of the bail-outs. That includes Fannie Mae and Freddie Mac..
And he wants those salary cuts to be retroactive.
He also wants the power to determine all compensation agreements in those companies, and the ability to retroactively void all currently in place.
He will be granted that all-encompassing power possibly as soon as next week.
In addition, the bill gives the Treasury Department the responsibility of deciding how to evaluate the performance of each single employee of those companies.
His bill, named the "Pay for Performance Act of 2009," has already quietly passed the Financial Services Committee (led by Barney Frank), with 100% of democrats passing it, and most all republicans (except for 2) voting against it. It is expected to be voted on in the House this week. It is expected to be passed by the democrat majority, then go to the Senate where the democrats will also quickly pass it.
It's really easy now to get bills signed in the Senate, since nobody demands the bills be read first.