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Official: $1.58B in 'unwarranted' bonuses
WASHINGTON, A U.S. official has concluded top executives at banks that got government bailout loans received $1.58 billion in bonuses that were unwarranted, officials said.
Citing two officials it says have knowledge of the determination, The New York Times reported Thursday the Obama administration special master for executive compensation, Kenneth Feinberg, has concluded top earners at 17 banks collected the questionable bonuses just after the banks received billions of dollars in bailout funds in late 2008 and early 2009, as the financial meltdown reached its peak.
The conclusion is said to be part of a report Feinberg is expected to release Friday, the Times said.
The report will name Citigroup, Goldman Sachs and American International Group, as well as smaller institutions, the officials told the Times, and will say banks used questionable criteria in determining who would receive bonuses.
Feinberg is expected to conclude the bonuses were ill advised but not illegal.
Eleven of the 17 companies mentioned in Feinberg's report have repaid the bailout loans with interest. All 17 have notified Feinberg they would consider his proposal that they take voluntarily steps to allow restrictions on bonuses and other remuneration if another financial crisis should develop, the Times said.
WASHINGTON, A U.S. official has concluded top executives at banks that got government bailout loans received $1.58 billion in bonuses that were unwarranted, officials said.
Citing two officials it says have knowledge of the determination, The New York Times reported Thursday the Obama administration special master for executive compensation, Kenneth Feinberg, has concluded top earners at 17 banks collected the questionable bonuses just after the banks received billions of dollars in bailout funds in late 2008 and early 2009, as the financial meltdown reached its peak.
The conclusion is said to be part of a report Feinberg is expected to release Friday, the Times said.
The report will name Citigroup, Goldman Sachs and American International Group, as well as smaller institutions, the officials told the Times, and will say banks used questionable criteria in determining who would receive bonuses.
Feinberg is expected to conclude the bonuses were ill advised but not illegal.
Eleven of the 17 companies mentioned in Feinberg's report have repaid the bailout loans with interest. All 17 have notified Feinberg they would consider his proposal that they take voluntarily steps to allow restrictions on bonuses and other remuneration if another financial crisis should develop, the Times said.
