Economist: Bonus bill would nix 1 Million jobs (JP Morgan)

[Chris]

Economist: Bonus bill would nix 1M jobs

The House-passed AIG bonus bill would lead to the loss of one million jobs, according to a senior economist at JP Morgan.

The legislation, which moved swiftly in the House last week, has dim prospects in the Senate. But some critics of the bill are nervous it may resurface later this year. Senate Majority Leader Harry Reid (D- Nev.) is vowing to revisit the issue after the April recess.
 
Michael Feroli, an economist at JP Morgan, recently issued an analysis that concluded that the bill’s restrictions on compensation would put companies receiving Troubled Assets Relief Program (TARP) funds “at a severe competitive disadvantage for talent relative to foreign banks which have not received such funds.”

Feroli wrote, “TARP recipient institutions would have a very strong incentive to return the funds.”

Plugging assumptions into economic models, Feroli stated the impact of the House bill “would be a decline of 1% and a loss in employment of just about one million jobs.”

http://thehill.com/leading-the-news/economist-houses-bonus-bill-would-nix-1m-jobs-2009-03-24.html

Another bite of shit sandwich from the picnic that is the Obama administration.

[RobJohnson]

I doubt this would stop many from not accepting TARP funds.  Long term planning really has not been a strong suit up to this point, and I don't look for that to change anytime soon.