For political viability and rough equity, the financial rescue plan requires:
- Pay reform
- Cancellation of current golden parachutes
- Look backs in the future--pay over $1M conditioned on the long-term profitability of the enterprise over more than a decade
- Substantial upside for the government
- Immediate substantial equity dilution via warrants for companies that put any substantial share of their assets to the Treasury
- Congressional approval of terms
- Personnel: I wouldn't vote for anything that could give a McCain-appointed Treasury Secretary this much authority. I don't think I know Paulson well enough to trust him with this much authority. (I would trust Bernanke.)
