Compensation Issue May Not Hang Up Negotiations

Posted September 22, 2008 at 6:35pm

House Democratic leaders emerged from a Monday night meeting offering little new insight into negotiations on a financial sector bailout package.

“We’re not quite there yet,” Financial Services Chairman Barney Frank (D-Mass.) said of the $700 billion proposal.

But in one development, Republicans appear to be warming to a Democratic proposal for capping CEO compensation.

A GOP source close to negotiations on the package said most rank-and-file Republicans “are pissed” that administration officials are not willing to concede on capping executive compensation.

“We cannot nor should we be fighting on this,” said the source.

The House Democratic Caucus planned to meet later Monday night. Aides said Frank and Appropriations Chairman David Obey (D-Wis.) will speak to Members about the bailout bill and a continuing resolution to keep the government running.

Looking to other bills set for action this week, House Majority Leader Steny Hoyer (D-Md.) said Democrats still haven’t decided whether to link a stimulus package to a continuing resolution, both of which will advance this week.