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Massive Pay Packages for Execs Who Got Taxpayer Bailout Money
Executives at firms that received biggest taxpayer bailouts got millions in pay packages
Although there was a $500,000 salary cap on executives who received considerable assistance from the Troubled Asset Relief Program (TARP), the Treasury Department actually approved pay packages in the millions for those execs.
photo: Paris Marron / CODEPINK Women for Peace
Juan Gonzalez reports on the sky-high pay:
Treasury Department approves huge paydays for execs at firms who received TARP bailout money
The Treasury Department approved pay packages worth $5 million or more for 49 executives at a handful of firms that received the biggest taxpayer bailouts between 2009 and 2011.
A scathing new audit this week by the inspector general for the Troubled Asset Relief Program blasted those payments, all of which occurred despite a $500,000 salary cap that President Obama and Congress established in 2009 at firms receiving “exceptional assistance” under TARP.
Treasury Department and Federal Reserve Bank of New York officials joined behind the scenes with the bailed-out firms to repeatedly pressure Kenneth Feinberg, the special federal master overseeing the compensation packages, to approve higher salaries, the audit found. [...]To his credit, Feinberg resisted the most outrageous salary demands, but he still approved dozens above the government’s $500,000 cash cap.
In 2009, for instance, he approved a $10.5 million package for AIG chief executive Robert Benmosch, which included $3 million in cash.
The following year, Feinberg approved another $10.5 million for Benmosch, while signing off on packages of from $3 million to $7.6 million for 17 of AIG’s 22 top employees.
Ally CEO Michael Carpenter got approval for an $8.1 million package. General Motors chief Fritz Henderson got $5.1 million.
20 Comments so far
Show AllI wonder what his new Consumer Protection Chief has to say about this crime.
And selective enforcement is no better. We are half way to losing the rule of law because of lawless encroachments from all directions.
I hope none of you lose sleep waiting for Holder to put any of these folks in Jail. He'd have to start with Geitner.
And in your description is exactly what I meant about "selective enforcement"
If you'd like examples of the lack of the "Rule Of Law" simply look across to Syria. Somalia, Darfur and many other places. That is real oppression, real "aristocratic" privilage, real autocratic control.
The Rule of Law is not something we can't lose and if we lose it you will see what many pretend already exists in America. I'll use what Trylon said about medical care in Canada and apply it to America and the rule of law "it is not perfect - but no system is"
That's the sort of mentality that comes from listening to too many social scientists and politicians.
First off, the law does not stop those who want to break it from breaking it... what are crime figures but records of where law does NOT work? You talk of the 'rule' of law but you might as well talk about the failing of law to rule!
Secondly, anarchy is the natural state that has always existed: a state in which the herd forms some form of leadership to guide it and provide some form of structural strength. We live in anarchy and have corrupt people in charge. Sure, major change could temporarily destabilise things and have negative consequences... but don't fall for this nonsense that laws are only challenged by nut-cases whose real agenda is a population of individuals all at war with one another. I say the law is an ass and people are worthy of better... most of us want harmony with those around us, would you believe!
Lastly, this continual comparison with countries and regimes that are deemed to be worse than others shows a lack of vision - a totally unfounded idea that the world exhibits all possible forms of social co-habitation. That's silly! All cultures and communities have witnessed ENDLESS CHANGE throughout all time! Who knows what we have not yet seen? But if you spend your whole life looking at rats down a sewer debating who has the best and the worst life styles, it's only to be expected that you eventually forget that you are merely comparing rats down a sewer with other rats down a sewer. Get out of the sewer that is mental lack of vision!
AIG still owes tens of billions to the U.S. government from the TARP bailouts they received. In fact, they owe far more than any other single TARP recipient -- most others have already paid back most or all of their their bailout moneys.
But, hey, heaven forbid that Robert Benmosch should pay a heftier tax rate on his $10.5 million salary than you and I pay on our $50,000, right? I mean, that would just not be fair, eh Bobby-boy?
"Kenneth Feinberg, the special federal master overseeing the compensation packages..." is an interesting and notably non-impartial party here. NOTE: Nobody, and I mean nobody, makes it in this world, on that $cale, without some hefty lifting underneath...