WSJ reported McCain criticism of execs' pay without mentioning his approval of Bear Stearns aid

In an April 7 Wall Street Journal article, reporter Laura Meckler asserted that Sen. John McCain "displayed a strong populist streak over the housing crisis this weekend, blasting what he called the 'outrageous' and 'unconscionable' compensation of Bear Stearns and Countrywide executives and their 'co-conspirators.' " Meckler later added that "McCain's rhetoric is notable because it comes from a self-described conservative Republican and follows comments he made nearly two weeks ago emphasizing that some problems were caused by irresponsible borrowers who bought homes they couldn't afford, betting that rising prices would save them." She then quoted McCain's statement from a March 25 speech: "It is not the duty of government to bail out and reward those who act irresponsibly, whether they are big banks or small borrowers." However, while Meckler noted that in his March 25 speech, McCain "didn't rule out more sweeping federal aid," she did not mention that McCain reportedly agreed with the Federal Reserve's decision to extend a $30 billion loan backed by Bear Stearns assets to facilitate the acquisition of the near-bankrupt investment firm by JP Morgan Chase, which reportedly puts taxpayers at risk for $29 billion of the loan if the value of Bear Stearns' assets declines.

Meckler quoted McCain saying, "I think it's outrageous that someone who is the head of Bear Stearns cashes in millions and millions of dollars in stocks," and reported that "James Cayne, chairman and former CEO of Bear Stearns Cos., recently sold the vast majority of his stake in the company, generating $61 million. As one of the largest shareholders, he also lost a lot of money with the firm's collapse." A March 28 Associated Press article reported that "Cayne sold 5.66 million shares for exactly $10.84 a share on March 25, according to a filing with the Securities and Exchange Commission. His stake was once valued at about $1 billion when the stock was trading at $171.50 per share. ... His stake at one point plunged to about $27 million when JPMorgan announced nearly two weeks ago it would acquire the No. 5 U.S. investment bank for $2 per share. JPMorgan later upped that offer to $10 per share, and agreed to acquire 39.5 percent of the company without a shareholder vote to block any rival offers."

An April 3 Associated Press article reported that during weekend of March 14-15, "Bear Stearns informed the Fed that it was on the verge of having to file for bankruptcy protection because nervous creditors were demanding to be repaid. The investment house was purchased by JP Morgan Chase & Co. with assistance from the Fed in the form of a loan backed by $30 billion of Bear Stearns assets. JP Morgan has agreed to absorb the first $1 billion of losses if the value of the assets declines, but taxpayers are at risk for the remaining $29 billion. Bear Stearns, with a stock price around $150 per share a year ago, was sold for $10 a share, becoming the biggest victim of a severe credit crisis that hit financial markets in August."

From the April 7 Wall Street Journal article:

The likely Republican presidential nominee displayed a strong populist streak over the housing crisis this weekend, blasting what he called the "outrageous" and "unconscionable" compensation of Bear Stearns and Countrywide executives and their "co-conspirators."

It is part of Sen. John McCain's effort to show anger at the people behind the housing crisis and sympathy for those who are facing foreclosure, while remaining skeptical of proposals that would commit the federal government to aggressive action to help them.

Asked about the housing crisis Saturday, the Arizona senator volunteered his disgust with executives who have earned millions at companies at the center of the crisis; he sounded themes heard more often on the Democratic presidential campaign trail.

"And could I add, I think it's outrageous that someone who is the head of Bear Stearns cashes in millions and millions of dollars in stocks. And I think it's unconscionable when the guy who apparently is the head of Countrywide and his co-conspirators make huge amounts of money while Americans are facing the threat of losing their own homes," he told reporters in Prescott, Ariz. "It's a terrible thing."

James Cayne, chairman and former CEO of Bear Stearns Cos., recently sold the vast majority of his stake in the company, generating $61 million. As one of the largest shareholders, he also lost a lot of money with the firm's collapse.

Angelo Mozilo, CEO of Countrywide Financial Corp., received total compensation of nearly $250 million from 1998 through 2007 and collected an additional $406 million from the sale of Countrywide stock, according to a report by the House Oversight and Government Reform Committee.

[...]

Sen. McCain's rhetoric is notable because it comes from a self-described conservative Republican and follows comments he made nearly two weeks ago emphasizing that some problems were caused by irresponsible borrowers who bought homes they couldn't afford, betting that rising prices would save them.

In a speech March 25, he said: "It is not the duty of government to bail out and reward those who act irresponsibly, whether they are big banks or small borrowers." He also said that any assistance shouldn't "reward people who were irresponsible at the expense of those who weren't."

The proposals he made that day were modest, though his speech didn't rule out more sweeping federal aid. He said any help should be temporary and targeted to "deserving homeowners," with no help for speculators or those who bought property to rent or as a second home.