Obama to Appoint “Pay Czar”

"Special Master for Compensation" will manage federal funding

President Obama is planning to create a White House position to deal with the mess left behind by crumbling banks, appointing a "pay czar" to make struggling institutions bailed out by the government don't pay execs too lavishly with taxpayer funds.

The "Special Master for Compensation" will ensure that companies are abiding by federal guidelines, the Wall Street Journal reported.

Obama is considering Kenneth Feinberg, the man who oversaw the government's payout to victims of the September 11th attacks, to fill the Treasury Department position, the Journal reported -- a move that has Wall Streeters anxious about how he'll manage the cash.

Feinberg's appointment could be announced next week by the Obama administration as it releases the federal guidelines for executive compensation under the White House's $700 billion Troubled Asset Relief Program.

The "pay czar" will report to Treasury Secretary Timothy Geithner and will likely have sweeping authority to create programs and moderate bailout funding.

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