In the funny business of bailing out Wall Street, Peter Morici--a professor of international business at the University of Maryland--insists one of the biggest problems in the current situation is the one thing he claims no one on CNBC wants to talk about: Wall Street salaries.
He says Treasury Secretary Hank Paulson's $700 billion plan "only puts off the disaster, because it is not requiring institutions to reform compensation structures which gave rise to the sale of high-risk securities." Morici's theory is that when you pay a 35-year-old $10 million on Wall Street--so that the CEO can justify a $200 million salary--these people feel pressure to do something much riskier than sell good ol' "plain vanilla" securitized debt instruments. He refers to Wall Street CEO's as a "cartel" who have engaged, in essence, in salary "price fixing." He believes that has to change.