Administration Looks for an Out on Bailout Rules

Here’s an interesting story from The Washington Post this morning:

The Obama administration is engineering its new bailout initiatives in a way that it believes will allow firms benefiting from the programs to avoid restrictions imposed by Congress, including limits on lavish executive pay, according to government officials.

Administration officials have concluded that this approach is vital for persuading firms to participate in programs funded by the $700 billion financial rescue package.

via Administration Seeks an Out on Bailout Rules for Firms – washingtonpost.com.

I wonder what is happening behind the scenes here. Does this have anything to do with banks giving back their TARP money? The bank rescue plan already gives participants so many incentives; how will Congress react if there are no limits on executive compensation?