Wall St. Pay Overhaul Is Coming, Geithner Says - DealBook Blog - NYTimes.com

Well it could be worse. Geithner gave a long interview (watch it if you can) with Bloomberg. Some highlights from Bloomberg and the NY Times:

From Bloomberg:

"The administration’s pay plan would be part of a proposed comprehensive overhaul of financial regulation aimed at both protecting consumers and reducing vulnerability to crises. Geithner has previously ruled out setting specific caps on pay and declined to alter existing compensation contracts.

In a wide-ranging interview, the Treasury chief declined to say whether the administration would propose stripping the Securities and Exchange Commission of some of its powers as part of the plan and dismissed suggestions of a rift with Federal Deposit Insurance Corp. ....

...shied away from declaring the financial crisis over, saying that credit is still tight and interest rates are still high for many business borrowers. He forecast that would improve gradually as companies and consumers reduced their debt levels to more financially manageable levels."

From the NY Times: Wall St. Pay Overhaul Is Coming, Geithner Says - DealBook Blog - NYTimes.com:

"...according to Treasury Secretary Timothy F. Geithner, who told Bloomberg Televison that the proposed overhaul should be announced “within weeks.” In a portion of the interview made available Friday on Bloomberg’s Web site, Mr. Geithner said to expect a “very, very substantial change.”

How substantial? Well, Mr. Geithner has already come out as opposing outright pay caps, saying there are better ways to fix a compensation system that fueled big, dangerous bets.

He seems to favor shareholder votes on executive compensation, known as say-on-pay provisions, which were a condition for banks that were part of the Troubled Asset Relief Program. Such votes are nonbinding, but can send a strong message."