Bad bank executive. No pay for you.

Not only that, but you have to give back what you have been paid this year.

It scares me to think this story is from America. From Bloomberg:

The decision marks the first return of money at one of the seven companies whose compensation practices are being scrutinized by [U.S. government pay supervisor Kenneth] Feinberg, the Obama administration’s “special master” on executive pay.

Yes, I know American taxpayers handed these banks huge chunks of money. I wasn’t wild about that. But I never dreamed this was the change of which President Obama spoke in all those campaign speeches. One political appointee manages the pay for seven publicly traded banks.

That should worry folks a whole lot more than Rush Limbaugh being blackballed by the NFL.

Comments

  1. Wilson828 says:

    This was the government deal that Bush brokered right? And now the Obama Administration is administering the program? And the problem is what?

  2. BofA had an alternative: liquidation.

    Bush coulda forced that–but instead, BofA took our money and NEVER re-stated its “earnings” for the periods beginnning 2003.

    Liar’s poker and the B0fA liar lost.

    Tough shit.

  3. So, dad29, government specified executive pay is a good thing in this case?

  4. The Lorax says:

    No one said they had to take the bailout.

  5. I have no problem with the bonus. But at the end of the year to “clawback” his salary is wrong.

  6. Randy in Richmond says:

    Trying to look tough and earn PC points. No way is this the right thing to do. Did they take back the money Van Johnson had been paid ?

  7. Perspective says:

    First they came for the Bank Execs, but I said nothing because they had more and I greedily wanted some of their property…then they came for the Auto Execs, but I said nothing cuz I wanted some of their property…then they came for the Doctors, but I said nothing because I wanted some of their property..then all the “rich” but.., then all the folks who make more than I do, but I said nothing cuz I wanted some of their property..then they came for me, but there was nobody left to defend my right to property, so they took it, cuz those with less wanted it.

    What next, a Cultural Revolution a la China?

  8. Perspective says:

    Follow on topic: The Banks were stuck between the devil and the hard place. Say no to Frank/Fannie Mae/Community Reinvestment Act, and get blackmailed sued, or do what they thought as right for their shareholders ( the ones they USED to have to account to) and give the keys of houses to people who couldn’t pay for them in order to fill the CRA “race” requirements. The banks rolled over, rightly or wrongly..then rolled over more by taking tax money. Major screw ups. Auto Cos did the same thing. Bet big companies are learning to fight back before it gets this bad next time!

    It is wrong to force a breaking of contracts, whether or not it is from tax funds. We are tearing our rule of contracts and law to shreds, and scaring the crap out of businesses here and around the world, turning ourselves into Chavez-like land.

  9. I liked your “came for me” modifications, Perspective.

  10. J. Strupp says:

    The investment banking industry in this country and throughout the world did not spur the largest real estate bubble in American history in order to satisfy their CRA “race” requirements. I don’t know where you get your theory from but it defies logic and/or fact.

  11. J. Strupp says:

    P.S. Ken Lewis shouldn’t have a job and B of A should have been a nationalized entity 10 months ago. As it stands, they are a ward of the state anyway.

    As for his salary: i’m with Dad29. Too bad so sad.

  12. “The Banks were stuck between the devil and the hard place.”

    Wrong.

    Read The Big Picture blog, or Market Ticker.

    In fact, the taxpayers have (at the point of a gun) provided these guys with another 12 months’ income, and the banks are STILL writing off bad loans. Not residential mortgages, but Commercial RE mortgages and “development” loans.

    They had a choice. They could have chosen liquidation. But they took the free money.

    Tough shit.