Tags: US | Pay | Czar

Pay Czar: 17 Bailed-Out Banks Overpaid Executives

Friday, 23 Jul 2010 12:06 PM

 

  Comment  |
   Contact  |
  Print  
|  A   A  
  Copy Shortlink

The Treasury Department's pay czar said Friday that 17 banks gave their top executives $1.6 billion in lavish payments while they were receiving billions of dollars in taxpayer-funded bailouts.

Kenneth Feinberg said he did not have the authority to ask the firms to repay the money that was handed out during the financial crisis. But he said they should develop new rules on compensation that would allow them to slash compensation payments in future crises.

"If the company's board of directors has identified that the firm is in a crisis situation, the compensation committee would have the authority to restructure, reduce or cancel pending payments to executives," according to a fact sheet Feinberg released.

Feinberg reviewed 419 companies that received bailout money before pay curbs were enacted by Congress in February 2009.

The review covered the period from October 2008 to February 2009. The starting point was when banks began receiving bailout money from the $700 billion Troubled Asset Relief Program. The ending point was when Congress enacted pay curbs on institutions receiving government support.

He determined that a total of $1.7 billion in payments were made during that period that would have violated the guidelines adopted later. And $1.6 billion of that amount was paid out by 17 of the country's largest financial institutions.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  Comment  |
   Contact  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

US Crude Plunges 10% in Biggest One-Day Drop Since 2009

Friday, 28 Nov 2014 21:41 PM

U.S. crude tumbled 10 percent in its biggest one-day drop in more than five years on Friday, and benchmark Brent broke b . . .

National Protests Over Ferguson Briefly Close Malls, Shut Down Trains

Friday, 28 Nov 2014 21:20 PM

Demonstrators temporarily shut down two large malls in suburban St. Louis on one of the busiest shopping days of the yea . . .

Next Partisan 'War' in New Congress Will Be Over Science

Friday, 28 Nov 2014 19:58 PM

After midterm battles, an immigration standoff and amid a switch of power in Congress, the next political fight in Washi . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved