Rebuke but No Consequences for Post-Bailout Bonuses
Sticks and stones and all that: U.S. bankers are probably glad today that, as the childhood rhyme claims, “words can never hurt me,” since the Obama administration’s so-called pay czar has decided to criticize them for paying out $1.6 billion in extra payments to top execs after they received federal bailout funds — but not seek any punishment.
Wait, before you go…Los Angeles Times:
The Obama administration’s pay czar on Friday criticized Goldman Sachs, Bank of America, Citigroup, Wells Fargo and 13 other financial firms that received bailout money for making a total of $1.6 billion in bonus and other payments to highly paid executives during the height of the financial crisis in late 2008 and early 2009.
But though he called the payments “ill-advised,” there will be no attempt to get the firms to pay back the money, said Kenneth R. Feinberg, the special master for executive compensation under the $700-billion Troubled Asset Relief Program or TARP. Instead, Feinberg has asked the boards of those firms to voluntarily adopt a so-called “brake provision” that would allow such payments to be withheld during another financial crisis.
The companies have said they would consider the proposal, Feinberg said.
“I have not heard much pushback from these companies on this request,” he said. “They have not formally agreed. They have not formally disagreed. Some said we already do it.”
If you're reading this, you probably already know that non-profit, independent journalism is under threat worldwide. Independent news sites are overshadowed by larger heavily funded mainstream media that inundate us with hype and noise that barely scratch the surface. We believe that our readers deserve to know the full story. Truthdig writers bravely dig beneath the headlines to give you thought-provoking, investigative reporting and analysis that tells you what’s really happening and who’s rolling up their sleeves to do something about it.
Like you, we believe a well-informed public that doesn’t have blind faith in the status quo can help change the world. Your contribution of as little as $5 monthly or $35 annually will make you a groundbreaking member and lays the foundation of our work.
Support Truthdig
There are currently no responses to this article.
Be the first to respond.