Lawmakers appeared to have watered down executive compensation restrictions included in an economic stimulus package that would have applied to any bank that received government assistance.

Details remained in flux as House and Senate leaders were still hammering out final negotiations late Thursday on the bill with the goal of bringing the legislation to a House vote today.

But Democratic aides and lobbyists said the final product was likely to be less restrictive than what had been adopted by the Senate this week. Ultimately, sources said the provision was likely to look more like the administration's plan, which would cap executive compensation at $500,000 per year for banks that receive extraordinary assistance.

The Senate provisions, strongly opposed by the banking industry, would have applied to banks retroactively.

The bill included a $400,000 cap on compensation for any bank that received money from the Troubled Asset Relief Program.

Another provision would have forced Tarp recipients with bonuses exceeding $100,000 to give the money back or pay an excise tax.

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