July 23, 2010

Bailed-out bank execs got $1.6B in bonuses

Posted: 12:15 PM ET

NEW YORK (CNNMoney) - Nearly twenty financial firms including Citigroup and Goldman Sachs made an estimated $1.6 billion in "ill-advised" payments to executives during the peak of the financial crisis, according to a report published Friday.

In his latest review of compensation practices at companies that were bailed out by American taxpayers, White House pay czar Kenneth Feinberg condemned 17 banks and financial firms for how they rewarded employees between late 2008 and early 2009.

"These 17 exercised poor judgment," he said, during a briefing with reporters in Washington. "They shouldn't have made these payments."

Feinberg, who is moving onto handling claims related to the BP oil spill, said he would not seek to recoup those funds.

Rather, he proposed those firms adopt new rules that would allow them to restructure or cancel pay packages in the event of another financial crisis.

The report represents the latest in a series of rulings by Feinberg.


Filed under: Business News

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gerald Jolly   July 23rd, 2010 3:39 pm ET

And what will our goverment do about it.


They'll do as they always do.


Charles   July 23rd, 2010 4:19 pm ET

As long as TARP funds are repaid with very good interest rates, I don't care what the employees make.

Smith in Oregon   July 23rd, 2010 4:56 pm ET

Of course, the departing corrupt Republican administration of Bush-Cheney was entirely lining Wall Street firms and bankers with taxpayer provided golden parachutes and at the same time gutting domestic spending forcing layoffs of police, fire, library's, and schools.

I believe the level of crass and callous corruption took newly elected President Obama by surprise when it became more widely known that those huge Wall Street bonuses were slipped into the Bush-Cheney Wall Street bail out plan.

The encouraging news on this toxic pit of morass is that repayment with interest on those large sums of taxpayer dollars will result in a sizable profit after TARP has been paid back to the US taxpayer's revenue funds.

Lucy   July 23rd, 2010 5:03 pm ET

If the media has the names and dollars for each, they need to publish them. I'm not sure these pigs can be shamed by anything but I hope we try.

John H   July 23rd, 2010 5:49 pm ET

If this isn't just cause to place them all under arrest, I don't know what is. No one individual is worth that kind of money and I don't care how well educated or experienced he/she is. So they are paying the money back! So What! Why did we have to bail them out in the first place. No, serious jail time is the only remedy for this folks!

JIM CARROLL   July 23rd, 2010 6:01 pm ET

Why can't the News Media rub its belly and pat its head at the same time, or will they use any excuse to keep from giving Obama his dues? THE LIFE BLOOD

Now is the time for all Liberals to come to the aid of the Democratic Party. I am a Liberal with a big L. I did not get every thing I wanted!
But I am not stupid enough to believe that electing more Republicans will help the Liberal Cause!

The way to pay for unemployment benefits is with new money. Has the News Media and members of Congress never
read Article 1, Section 8, of the Constitution? If they have, surely they would know that Congress has three ways to pay

Make BP open up the cap long enough to pump oil to the tanker to find out for sure what they have been pouring into the Gulf. They say the take-away capacity is greater than the amount of oil coming out
of the well. They would like for the Federal Government not to know for sure. Let us find out before they kill the well. It is possible that they will drill a smaller hole into the old well.

Make BP and the other big oil companies have at least two ways each to stop similar leaks before oil drilling
off shore is resumed.

Smith in Oregon   July 23rd, 2010 6:29 pm ET

@ Lucy, while I echo your sentiments, what I and many other American citizens living on Main Street, USA that had their 401Ks gutted, the American economy utterly destroyed along with the economy's of a large number of nations around the world, Those 13 Trillion dollars worldwide did not simply entirely disappear, they were taken from Billions of people and business persons across the entire earth and PLACED into a relatively small handful of informed individuals.

The small number of people and their business's that ended up pocketing 13 Trillion dollars SHOULD have their photo's, names, affiliations and organizations they belong to publicly listed for everyone on earth to see and come to their own conclusions.

What those thieves did makes Bernie Maddoff look like a petty criminal and the total lack of News Media investigations on each of those individuals are allowing those career criminals to get away with it.

Beverly E. Dennis   July 23rd, 2010 6:29 pm ET

Wayne Aalyn Root-Overwhelm the system.......Barak Obama is no fool. He is not incompetent. To the contrary. He is brilliant. He knows exactly what he"s doing. He is purposely overwhelming the U.S. economy to create systemic failure. economic crisis and social chaos-Thereby destroying capitalism and our country from within. Barack Obama was my college classmate of (Columbia University. class of 83).... Obama is following the plan of Cloward & Piven. two professors at Columbia University. They outlined a plan to socialize America by overwhelming the system with Goverment spending and entitlement demands......It is a brilliant, Machiavellian game plan to turn the United States into a Socialist / Marxist State with a permanent majority that desperately needs Goverment for survival....and can be counted on to always vote for bigger Goverment. Why not? they have no responsibility to pay for it...Add it up and you"ve got the perfect Marxist scheme= All DEVISED by my Columbia University college classmate BARACK OBAMA using the Cloward and Piven plan.

Beverly E. Dennis   July 23rd, 2010 6:41 pm ET

Please note- just sharing above statement by Wayne Aalyn Root. he has much more. perhaps you may give an invite to Mr. Root . would love a truth or not being told. just saying.

Smith in Oregon   July 23rd, 2010 9:14 pm ET

As rabid xenophobe ultra-right conservatives collectively known as 'The Republican party and Tea party' membership watched last night's Glenn Beck blow a gasquet in his latest 'entertainment' episode, he repeated his assertion that directly because President Obama and the Democratic Congress passed America's Finance Regulation and Overhaul, the American democracy and it's grand experiment is now 'over'.

No more 'to big to fail Wall Street firm Republican bail-out's with American taxpayer dollars and according to Glenn Beck, the American Republic is 'Over'? That man is very sad, but the primary question is very much unanswered.

Is the American Republic 'Over'? That is the primary question, however the answer is unfortunately not easily known.

During the utterly depraved and corrupt Republican administration of Bush-Cheney, they created a utterly gigantic Shadow Government under the guise of 'Dept. of Homeland Security'. Bush jr. carefully crafted photos of a single small empty lot and declared that would be the future home of the new dept. Lie's built on lie's are often pointing to the very outcome and merits of a 'thing' in question.

Thanks to the Washington Post article, the new Shadow Government's main complex's alone is THREE times the size of the US Pentagon! There are over 1,200 agencys, some 10,000 offices nationwide and a whopping 800,000 managers with top secret or higher clearance. The lowest possible workers to managers ratio would place them at a bare minimum of 2.4 Million employees in America's Shadow Government alone.

Does America's Shadow Government in fact rule over America's publicly elected Democratic Government? Dick Cheney crafted portions of the Shadow Government to be under over 1,000 different top secret cleared sub-contractors who are not under any US Congressional oversight, nor US Congressional reporting. They are not directly answerable to the US President. Has the great American experiment in Democracy ended? Perhaps, but not for the reason that Glenn Beck bellowed out during his nightly entertaining the Republican party media slot.

Jessie from Auckland, NZ   July 25th, 2010 3:46 am ET

This is ludicrous. Utter madness.

anthony   July 25th, 2010 11:00 am ET

I don't doubt why the Government is in either already or in the process of establishing other agencies.Could it be because of situations like in Arizona,the anti government click within the Arizona state government to legalize racism.If this is not abuse of POWER.I don't know what is. As far as the 1.6 billion payments to bank executives.That was done under Anti Trust Tax law that put in place before Obama was even ellected. to legally protect the Goldman Sachs,CityGroup,and JP Morgan if it ever surfaced.That would be Former Vice President Dick Cheney.He pretty much was in charge of the White House when Former President George W. Bush was the Commander in Chief.Glenn Beck, Bachmann,Rush,Cantor,and Angle.Anything coming from these people politically are merely what I would call half truths.....Good example is Shirley Sherrod.

Chris Smith   July 25th, 2010 7:48 pm ET

What about all the thousands of employees they laid off during that time the government has been paying unemployment benefits. Think of how many employees could be still employed?

Absolutely shameful!

Charles   July 26th, 2010 4:11 pm ET

@Beverly E. Dennis,
You are one sharp person. I have read about Cloward and Piven. It certainly fits with what we see and hear today.

mike   July 27th, 2010 5:31 am ET

why should banks and big business get the bail out the one who should get the bail out is the little person if it weren't for us they would not be in business

arizonia new is not raciest at all first of all you anti illegal immigration protesters 1st of all those cockroaches come into this counrty illegally they are taking jobs away from americans it about time that state such as arizonia and utah do something about it because of illegal immigrints i can't find a job because of illegal immigrints and companies hiring them and washington doing nothing about it we all could end up living in the wilderness like a wild animal way people lived back in days of little house on the prarrie i may be a democrat but if jan brewer ran for president i would cross my party line and vote for her

Randy   August 23rd, 2010 10:41 pm ET

When the Bank gave my daughter a $250,000.00 mortgage and she only made $12.00 an hour a few years ago and lost the house a year later II knew right then and there they were predators. I swear on a stack of bibles this is the truth. Do they even care how many lives they have ruined, especially our children? I do know for certain that we are doomed and we best prepare for the worse yet to come. I see a lot of horrible things they are doing to our kids just getting out of school. Brace yourselves!!!!!!!!!

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