More on Wells Fargo
Wells Fargo didn't need a bailout. The government forced them into it.
While the best solution is still not obvious, Cramer recommended looking at two banks that do not need TARP money; Wells Fargo and JP Morgan. In fact, Wells Fargo is doing so well, that it refused to take TARP funds until Treasury Secretary Henry Paulson forced it to.
Wells Fargo pointed out that the news story from AP was misleading, hardly unprecedented.
The government has just slapped a maximum salary on executives of companies taking these funds--whether they were forced into it or not. Effectively, these banks have been nationalized.
I leave it to you to figure out what will happen to corporate leadership under these conditions. No wait, that never works. I'll tell you.
Talent and competence will go where they can get paid for it. The ones willing to work for the "Maximum Wage" will end up being political flunkies with more political skills than financial ones, and the banks will end up being permanently on the government dole. Of course, the government can always pass Directive 10-289 or its equivalent, locking the executives to their jobs.