This morning on Bloomberg TV, U.S. Special Master on Executive Compensation Kenneth Feinberg had some interesting comments on John Thain’s new package at CIT and bonuses at Goldman Sachs:

Here are the key highlights from the full interview on Bloomberg TV:

Feinberg on whether he was consulted about CIT Group and John Thain’s pay package:

“Not at all. CIT is not part of my mandatory jurisdiction.The good news is that these private companies – CIT, Goldman, JP Morgan etc – they seem to be following the prescriptions I’ve laid out for the companies within my jurisdiction: relatively modest, base cash salaries and any upside is in the form of stock, not cash, so that the total value of compensation of an individual is tied to the overall performance of the company over the long term. That is all very, very good. The problem remains the high total compensation which is very much in excess of what we’re doing at the Treasury in keeping total compensation much more modest.”

Feinberg on whether Goldman CEO Blankfein’s $9M compensation is excessive:

“Yes I think it is [in excess]. If you look at the 700 people that are under my mandatory jurisdiction I do not believe there is more than one or two in the total of 700 that are making that type of total compensation. On the other hand, clearly Goldman is following the prescriptions I’ve laid out. Mr. Lloyd Blankfein is getting a very low base cash salary. His total comp is again tied up in long term stock, the value of which cannot be determined or transferred for about five years. That is the type of compensation we’re looking for, where value is tied to the total performance of the company itself.”

Feinberg on what would be a more reasonable scenario for Blankfein’s pay:

“I can’t speak to the culture and what is going on inside these companies. They are not really part of my jurisdiction. I like the mix of stock and low cash. The overall compensation again points out the necessity of doing something with the total compensation. The administration has proposed various approaches, the Volcker approach, a bank fee approach – I cannot really get to the total compensation but I am pleased at the prescription and that we’re not talking about guaranteed cash, which is something that is prohibited to those companies that are under my watch.”

Feinberg on whether Goldman and CEO Blankfein consulted with him on pay:

“Yes, [we] had a number of conversations. What the Treasury has recommended in terms of structuring, and size, I would like to think we had some influence on what Mr. Lloyd Blankfein finally decided.”

Feinberg on what influence he may have had over Goldman:

“Clearly, low cash base_I think Mr. Blankfein is getting under $600,000-Mr. Lloyd Blankfein is getting under that amount. His entire bonus, no cash, long-term stock, they cannot be transferred for I think five years. So that his ultimate package value will be determined by Goldman’s ultimate success over the long haul.”

Feinberg on the nature of his conversations with Blankfein:

“You will have to ask Mr. Blankfein. It was not about the package, but really about how Goldman as an institution should approach base salaries and compensation over time. He clearly was concerned, wanted to abide by what Treasury is doing and largely I think he has succeeded in adopting the prescriptions.”

Feinberg on whether these compensation changes are permanent:

“We will have to see. The Deputy Secretary of the Treasury pointed out a few months ago that these steps the banks are taking voluntarily is constructive – a small step. Whether or not it will be permanent, whether or not over a long period of time these prescriptions will stay in place [remains to be seen]. I know that Secretary Geithner is also looking to corporate governance reform, shareholder rights, regulatory reform, this is one part of a larger menu of prescriptions.”

Do you think Feinberg has had an effect on CIT and Goldman Sachs? Let us know what you think in the comment section below …

Former Treasury Secretary Henry Paulson is finally cashing in with his book. Below is an interview on Bloomberg in which Paulson discusses how he made his decisions when the economy was “on the brink”:

Do you agree with Paulson? How would you have quarterbacked the crisis? Is Paulson telling all in his new book, or has a lot been left out? Let us know what you think in the comment section below …

This chart “perfectly captures the inverse relationship between the Unemployment Rate and Average Hourly Earnings.” (Source: The Big Picture)

The February issue of Wall St. Cheat Sheet Premium is now available. We have taken 14 months of subscriber feedback and made some great enhancements to our product. We think you’ll agree.

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It’s the weekend. Time to kick back and enjoy our newest offering: The Leisure Cheat Sheet. This week we take a tour of the entertainment capital of the world Las Vegas, our partner Gary Vaynerchuk from Wine Library talks about which wines go best with bacon flavors, I review a delicious craft brew Magic Hat #9, we review the Canon Rebel digital camera, and our friends at TopGear test drive the Ferrari 458 (car of the year!) for your viewing enjoyment …

Click here to check our our quick guide to the good life now …

Here are direct links to our favorite articles which we think you should highly consider reading.

Without further ado, jump on board the Bullet Train …

The Global Debt Bomb by Daniel Fisher at Forbes

What Truly Caused the Economic Crisis by Barry Ritholtz at The Big Picture

How Likely is the US to Default on its Debt? by James Kostohryz at Minyanville

The Government’s $56 Billion Gift to Banks by David Henry at BusinessWeek

Taking a Trading Sabbatical at Abnormal Returns

Did you read our Most Popular posts this week? Here they are:

Turn On, Tune In, Drop Out: CNBC Ratings Get Smashed

Joe Weisenthal Explains the MAVINS Countries as Investments

The Edge: A Quick Peek into Earnings Season

Outrageous But Legal: Social Security Ponzi Scheme Needs a Bailout

Every morning I wake up to another report of faulty car brakes, recalls, and emergency repairs. Is it me, or did all the car brakes in the world suddenly stop working last week?

This whole fiasco started with a sticky Toyota pedal, and now Ford has a few models which hit the scary “shitty brakes” list, Renault is recalling cars in the Netherlands, and I anticipate every car maker world-wide to jump on the trend as not to feel left out.

This reminds me of all the fun times drivers had when car manufacturers suddenly realized that human beings should have a strap to keep them from flying through the windshield in the event of an accident. Lucky for us, now we have seat-belts and brakes that work. In 2030 we should expect cars without blindspots, and in 2050 maybe a car that won’t start if the driver is drunk. Who knows … cars might actually be safe in my lifetime. Well, maybe they will fly first.

Were you affected by any of the brake recalls? If so, feel free to share your story below.

The Prom Queen of economic reports is in:

The Bureau of Labor Statistics reports that “The unemployment rate fell from 10.0 to 9.7 percent in January, and nonfarm payroll employment was essentially unchanged (-20,000). Employment fell in construction and in transportation and warehousing, while temporary help services and retail trade added jobs.”

Additionally, the under-employment rate dropped from 17.3% to 16.5%. Although these are encouraging signs, unemployment is a lumpy data set and one month never indicates a trend.

The new Google (GOOG) Nexus One phone is another example of a tech company crossing into a new, yet related, sector. While reading many reviews of the NexusOne, I noticed many critics called Blackberry (RIMM) the biggest loser. Such a storm of similar comments begs the question whether Research in Motion should start thinking of themselves more like a data transmission device company and less like a smart phone company.

We all know there are many Darwinian aspects to business. When considering the long-term picture, no one can be sure whether the ultimate devices will evolve from netbooks, tablets, or smart phones. Moreover, each of these devices offer top brands a chance to compete for more revenue.

In the case of Research in Motion, the company is clearly one of the premier brands on the face of the earth. However, as Apple (AAPL), Amazon (AMZN), Google, and Sony (SNE) have been innovating into new categories, Research in Motion (RIMM) has been maintaining strict focus on smart phone devices.

There are landfills full of stock certificates from companies which refused to adapt to the bigger picture. Although Research in Motion has excellent management and superior products, why are they hesitating to produce an eReader and build an eBook library? Why are they denying their most loyal customers the opportunity to carry a sexy Blackberry netbook to the next meeting in the conference room?

Surely, there is much money to be made. Just think of what Coca-Cola (KO) would have been if much earlier it thought of itself as a beverage company instead of a soda company (e.g., they may have bought a young Starbucks (SBX))?

Blackberry has a comparable brand to Apple. Users are very loyal and willing to pay a premium for the status of the brand. There is no need to rush into new sectors like fools, but there is no need to lose the opportunity cost of copying Apple’s successful model. In 2010, I’d love to see Research in Motion surprise the world and guarantee their long-term survival in the data transmission device industry.

Precision Capital Management — who provides Wall St. Cheat Sheet’s Morning Market Report — submits: “There’s a lot of hype surrounding the always unpredictable Employment Situation report issued each month by the BLS.  Above shows the cumulative points in SPY (as a proxy for equities) on report dates gained from the overnight gap, the day session and a combination of the two.  Since November, 2008, equities have tended to fair well on these dates.  What’s not as obvious is that a gap down open often results in an up day by the close, and a gap up open often results in a down day.  It doesn’t happen all the time, but enough to warrant an extra bit of caution.  Also, Employment Situation report dates tend to mark interim tops and bottoms.  The March 6, 2009 report kicked off last year’s huge rally and the very bullish January 8, 2010 report was near the high.  So, if we’re still near the recent lows this Friday, there’s a decent chance of sparking a rally.  For daily market analysis, visit us here. (Source: Precision Capital Management)