Enough is enough, and this simply won’t happen.

“WASHINGTON — The Obama administration will call for increased oversight of executive pay at all banks, Wall Street firms and possibly other companies as part of a sweeping plan to overhaul financial regulation, government officials said.

The outlines of the plan are expected to be unveiled this week in preparation for President Obama’s first foreign summit meeting in early April.

Officials said the proposal would seek a broad new role for the Federal Reserve to oversee large companies, including major hedge funds, whose problems could pose risks to the entire financial system.

It will propose that many kinds of derivatives and other exotic financial instruments that contributed to the crisis be traded on exchanges or through clearinghouses so they are more transparent and can be more tightly regulated. And to protect consumers, it will call for federal standards for mortgage lenders beyond what the Federal Reserve adopted last year, as well as more aggressive enforcement of the mortgage rules.

The administration has been considering increased oversight of executive pay for some time, but the issue was heightened in recent days as public fury over bonuses spilled into the regulatory effort.

The officials said that the administration was still debating the details of its plan, including how broadly it should be applied and how far it could go beyond simple reporting requirements. Depending on the outcome of the discussions, the administration could seek to put the changes into effect through regulations rather than through legislation.

One proposal could impose greater requirements on company boards to tie executive compensation more closely to corporate performance and to take other steps to ensure that compensation was aligned with the financial interest of the company.

The new rules will cover all financial institutions, including those not now covered by any pay rules because they are not receiving federal bailout money. Officials say the rules could also be applied more broadly to publicly traded companies, which already report about some executive pay practices to the Securities and Exchange Commission.”

Look for the lawsuits to fly now, and save me “The King can do no wrong”. Corporations which seek to take the Government to court over this power grab would stand a very good chance of succeeding. In fact AIG has filed suit to recoup $306 million in tax payments they believe were wrongly snatched by the feds. Two Wall Street Firms are now considering legal action against the government should the “punishment tax” go forward.

It usually takes 100 government lawyers to equal the firepower of one good corporate legal hit guy, and if I were a company, especially one which had taken no payoff from the government, I’d be in federal court on Monday filing my papers.

Capitalism is under attack and if it wants to survive, it’s time to fight back through the courts.

UPDATE: Seems Obama’s own advisers are warning this could be trouble.