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 This material may not be published, broadcast, rewritten or redistributed.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.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Actor Booth Colman Dies at 91

Sunday, 21 Dec 2014 21:30 PM

Booth Colman, who had a long career as an actor including the role of ape scientist Dr. Zaius in the 1970s "Planet of th . . .

FSU Quarterback Jameis Winston Cleared in Campus Rape Hearing

Sunday, 21 Dec 2014 19:12 PM

Florida State University star quarterback Jameis Winston has been cleared in a student conduct code hearing looking into . . .

Satanic Temple Puts up Display at Michigan Capitol

Sunday, 21 Dec 2014 18:42 PM

Christians and Satanists put up competing displays Sunday on the Michigan Capitol grounds in Lansing as Christmas week g . . .

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