Late last month, Cuomo sought information from the country’s nine largest banks, including Charlotte-based BofA, regarding their plans for paying bonuses. He also asked their boards to explain what mechanisms they have in place to protect the taxpayer funds obtained through the federal bailout package.The 9 banks receiving federal bail out capital should have to cough up information on how they compensate their executives. If they don't like it, let them give the tax money back to the federal government.
The banks agreed to accept $125 billion in federal funds as part of the government’s "troubled assets relief program," or TARP, which is injecting money into banks.
How banks handle their compensation has become a political issue with the infusion of public funds. Critics say executives should not receive large amounts of compensation while their institutions are benefiting from federal funding.
Thursday, November 13, 2008
Bank of America Subpoenaed to Divulge Executive Compensation
More power to NY AG Andrew Cuomo:
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all i can say is get your facts straight -- some (most) of the first nine banks were forced to take the government capital. there was NO option. Get a the facts straight -- read their financial statements then report the real story -- not just create additional panic -- geez, i thought you were better than this -- guess not
ReplyDeleteThe banks took the money so the FDIC did not have to close them on Friday and open them on Monday under a new name. Corporate compensation has gotten too far into the Greed Zone. In 1980 the average CEO made 42 times the company's average worker. In 2005 that number has grown to 262 times. These CEO's are working with investor's money. NOT the company's money. NOT their money. They need to have a reality check. If not there is going to be an investor revolution that will change corporate america as we know it today. The CEO's have one last chance for elective change. An act of corporate responsibility if you will.
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