Obama to Sign Stimulus on Tuesday
But he warned that the $787 billion package is a first step, not a quick fix.
WASHINGTON, Feb. 14, 2009— -- President Obama plans to sign the nation's largest stimulus bill ever on Tuesday in Denver, Democratic sources told ABC News.
But in his weekly address, the president warned that the $787 billion economic rescue plan is a first step, not a quick fix.
"For our plan to succeed, we must stabilize, repair, and reform our banking system, and get credit flowing again to families and businesses," the president said.
Analysts are finding some surprises as they dig into the massive piece of legislation. Buried in the thousand-page bill is a limit on executive pay for bankers that's even tougher than what the Obama administration wanted. It caps not just pay, but bonuses, and not just for CEOs, but for all the top earners at those banks taking federal bailout money.
Some critics of the package say it could cause a brain drain on Wall Street, just when top talent is needed
"Those banks that bailout money would find it hard to attract quality producers," said James F. Reda, an independent compensation consultant, told ABC News.
Others say it won't work.
"The lawyers and executive consultants on pay are already hard at work devising creating ways to get around these restrictions," David Vise of New Mountain Capital Inc. told ABC News. "Don't underestimate the ingenuity of people to find new ways to get around new laws, new regulations and new restrictions -- especially when it comes to compensation."
"The pay cap was just one of several clauses inserted without debate - some scribbled by hand.
"We've got handwritten things in the margin here," Rep. Tom Price, R-Ga., told ABC News as he thumbed through pages of the bill.
He pointed out that on one page, one figure was lined out and another was written in pen.
"Instead of $100 million for facilities and grants and contractors, $150 million," he noted.
Economists say some of the spending could start fueling the economy within weeks, including: