Bill introduced to limit exec pay on old TARP funding; Goldman Sachs wants out of the TARP

Kay R. Hagan (D-N.C.), Claire McCaskill (D-Mo.), Bernie Sanders (I-Vt.), and Tom Harkin (D-Iowa) introduced a bill to limit executive pay from those companies previously receiving bailout money to $400,000 a year – the salary of the President. The bill is said to have strong support in both houses.

This on the same day that early TARP recipient Goldman Sachs says they want to pay back their $10 billion within the year.

The investment bank, which received a $10 billion capital injection from the U.S. Treasury’s Troubled Asset Relief Program in October, is not happy with the strings that came attached to the money.

Compensation restrictions and certain capital requirements were part of the original injection, and extra limitations may be in store after U.S. President Barack Obama imposed tough new rules limiting pay for companies receiving government aid.

“We would like to get out from under that,” Viniar said, adding that the bank aims to pay back the $10 billion this year.

These guys aren’t idiots. They like their pay. But it makes you wonder, was the bailout really that desperately necessary?

Comments

  1. Sweet Caroline says:

    Cindy, I completely agree with your questioning on weather or not the bailout was a good idea, however something needed to be done. I’m just happy to see some regulations when it comes to how the money is spent. Good material lately, you’re providing an excellent fresh perspective to the details of the work being done in D.C.!!!

  2. This is getting interesting.

    I do remember Wells Fargo did not want or need to be part of some agreement (don’t know if it was the TARP or something else) but they were made to sign on–no one could leave the room until all bankers there had signed on the dotted line. Will they ask to be let out of that agreement?

  3. I do remember a lot of money was forced on banks, but I think that was a smaller amount, not considered extraordinary. I think the smaller amount lets them out of the compensation restrictions being floated.

    Darn lot of good it did, huh?

  4. Was it needed? Not for Sachs. They continue to be in a far better position than the other guys.

    When the other big banks elect to opt out because of executive pay caps, let me know.

  5. “no one could leave the room until all bankers there had signed on the dotted line.”

    Ah, the Ross Perot method.

  6. I didn’t like TARP then and I like it less now. OTOH, when you take government money, they own you.

  7. Randy in Richmond says:

    Deekaman
    And that is called socialism. So who’s surprised?

  8. Randy in Richmond says:

    Have you noticed the Democrats are not using their traditional line “the polls show” when defending the stimulus bill? There has never been a majority of the American people for this legislation and even with the momentum of a new presidency what support there was is eroding. Two weeks ago polls indicated there was 45 % support for the bill and now, as the specifics are becomming known, that support is 37 % while those in opposition total 43 %.

  9. Stellar observation!