Will bonusfix slow recovery? volgens POLITICO.com wel

The Obama administration’s plan for fixing the financial system relies heavily on the participation of private institutions. Under the House bill, the treasury’s yet-to-be-launched public-private partnership to buy the toxic assets of bank balance sheets could take a serious hit, warn industry officials, as hedge funds and private equity funds grow increasingly wary of partnering with the government.

The restrictions could also hurt the $700 billion financial-market rescue program. Over the past few weeks, a growing number of banks have signaled that they want to leave the program as soon as possible. Lobbyists and analysts say the new compensation restrictions just encourage more to opt out, fearing that the government could change the rules of the program without warning. That type of uncertainty could lead to only the weakest banks participating in the program.

Will bonusfix slow recovery? - Lisa Lerer and Victoria McGrane - POLITICO.com