Departing Execs At Smaller TARP Banks Got Golden Parachutes

ProPublica:

Yesterday, the Treasury Department released new rules [1] on how much banks that received TARP money can pay their executives. Among the rules is one that prohibits golden parachutes -- defined as any payment to a departing exec simply because the exec is leaving. But an examination of public filings shows that a number of executives at banks that received TARP funds have received large payments just for resigning.

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Read the whole story: ProPublica

Comments

[5hy56]

Take back the trillions of $$$ given to the banks, who just sit on it and make it totally ineffective then start government incentive to create realistic industries that give employment and generate real productive income, some of which would hopefully be from exports.

Every other country, especially China and most of Europe have goverment incentives to protect it's industries. No matter what you call it it's a form of protectionism and its inevitable. We should stop being naive and take care of our own house. The only ones who win if we don't are the multinational corporations who don't care where they get their hand out.

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[FLAdeziner]

I'm an Obama supporter, but Mr. President & the Treasury Dept, you're killing the little guys out here. The banks are paying back the TARP funds, and still collecting huge compensation, but my home is worth 30% less than I paid for the house, and if I try to sell, the lenders have tightened their requirements for loans so that very few people qualify, and appraisals for homes include foreclosure numbers, so the properties that are for sale are further devalued. No one can sell anything unless you give it away!!!!

Mr. President, instead of giving the money to the banks, you would have been better off giving the money to the people to pay off their mortgages. I know it wouldn't have necessarily pleased everyone, but the banks would have had the money then to close out the bad debts, the people would have had their homes, the property values would not have dropped, and the bankers wouldn't have been rewarded for their bad business practices, and.......it would have been cheaper and faster to get us out of this mess.

At least get some regs & restrictions on the banks with some teeth in them so that they can't do this again, because if not, the bankers will do it again..

[5hy56]

The recovery is a forest. People have let their credit cards go, and don"t have mortgage payments it looks as if we are spending more and people have disposable incomes again. Actually, savings are getting drained and there are no new jobs. We are in the calm before the storm. People are spending what every little cash they have left on eating out and shopping for smaller ticket items. This will come to an end in 6 months. There are no new jobs. Can you hear the quiet in America?

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[Paul Schappaugh]

This is so far out-of-bounds that it is completely inconceivable to me.

The executives at the heart of this pandemic economic crisis, who mismanaged their companies should be out-of-work and unemployed - not being treated to golden parachutes with my hard earned Tax dollars!

I'm very disappointed that so far - Obama is not bringing about drastic, radical change to the broken system - allowing the crooks and thieves to waltz out with their pockets stuffed with my hard earned tax money is not the Change that I voted for and not the Change that I expect - after all TARP was a Bush plan to begin with.

[BigAl72]

No Kidding.

[5hy56]

The market just doesn't seem to care. No one cares about financial institution corruption, bad banks, recession, job loss, hyperinflation. It's just buy buy buy, Thanks to automation technology, outsourcing, in sourcing, free market capitalism/globalization, jobless recoveries are inevitable, sadly, for all future recessions. I predict baseline unemployment will rise from the historical average of 4-5& to 7-8% within the next decade, but the stock market & GDP will keep rising. Higher unemployment will be the new normal. Stocks that benefit from this phase shift are multinationals, high tech, and commodity.

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Politicians will do noting to impede this transition because they lack the power to restrain hypercapitalism, and because they are often paid off.

[SimJack]

The rape of America, the global superpower where failure, a$$ki$$ing, and being a total doo$hbag is the shortest path to financial independence. Not much incentive for decent, honest people who don't mind working hard to do all the heavy lifting when most of what they earned gets pi$$ed away by the corrupt politicians and what's left over is stolen by C-level managers which, thanks to the former, is perfectly legal. All great empires come an end. Au revoir middle class, and they'll be coming for the low ranking multi-millionaires next.

[periscope]

What has destroyed our country is the corrupt Republican administrations that have foisted one economic fallacy after another on the American people. Laissez faire' is a cruel joke. Deregulation was a crime. Ending anti-trust suits (as Reagan did) led to banks and other corporations becoming "too big to fail."
Republicans lied us into an unnecessary and costly war, and allowed Wall Street and the Banks to run amuck with financial instruments designed to fail.
The American middle-class saw it's income and well-being improve under New Deal policies, and if the middle-class and the poor are ever to get a fair break in the American economy, we will have to return to New Deal policies.

[Isabelle101]

Obama is distroying our Country and robbing our children's future!

[white mende man]

Ouch! too much hate there dear, Obama is only trying to fix what you are the Republican Party broke.

[urweatherman]

Sorry, but your blame is in the wrong place.....it was Barney Frank and Dodd that pushed for Fannie and Freddie when the GOP wanted them regulated. And by the way, its the liberal, progressive policy to pay welfare to those who fail to look for jobs and now for free health care.....so whats the difference?

[Pigeon2]

This goes back several administrations..Please stop blaming the Republican party for everything....

[BigAl72]

Even though it steams me to see these execs reward themselves for financial failures, I'm not going to blame the President who has been in power for only 5 months, I'm still blaming the President of the last 8 years.

[white mende man]

Heck why stop at 8, the Republican Party was going back as far as Jimmy Carter (not to mention Bill Clinton) while GWB was on his second term destroying the country.

[aramos]

Big deal, have you ever seen what our parting Politician's get? State and Federal. Its a disgrace.

[SamKnause]

We are being robbed in broad daylight. There are no laws to stop the theft. Corruption has taken over our entire country. Corruption is a prerequisite to be in politics. Nothing is going to change. Their is no reason for hope if corruption of our elected officials isn't stopped. I am not anti-government, I am anti-corrupt government. Taxes should be spent for the good of we the people. Every law passed should be helpful to we the people. Corruption has ruined the American Dream. Corrupt government and corporations own we the people.

[AProudLiberalDem]

SamKnause is right. With all this talk about capping executive pay and pay for performance, let's start with the biggest employer in the U.S. ... the federal government. The federal government as a business loses billions (now trillions) of dollars a year, yet the Congress who are responsible for this are not affected financially in any way. When they retire they get golden parachutes by getting book deals, jobs as consultants, or speaking engagement fees with special interest and lobby groups. Let's start with Congress.

[urweatherman]

And now you want government to run health care.......OMG!

[lightningbolt]

It is beyond obvious that our government is run by crooks, it doesn't matter what party is in power. No decent government would allow this level of theft to go on. In the next election we must throw both the republicans and the democrats out of power. The time for another party to rise is now.

[SamKnause]

I agree with all of your points except time for another party. I fear it does not matter what party is in power, all politicians are for sale and sell their selves to the highest bidder. Lobbying needs to be outlawed. If you can buy your government, then you have no government. We the people should control our government. They are elected by us and paid by us. If they want to work for lobbyist then they should forfeit their salaries and perks and live off their ill gotten gains from the people who buy their votes, lobbyist.

[lightningbolt]

The problem is that in order to make lobbying illegal, you have to convince Congress to make it illegal, and in order to to do that, you need to lobby them with more money than the pro-lobbying lobbyists will give them. Congress is just too happy receiving bribes.

[lightningbolt]

There is only one word to describe this: theft of taxpayer money. The CEO's who's banks got bailed out must return their golden parachutes.

[roncar]

Look what GE's CEO has done to GE. Driven their stock into the dirt. Now he's one of Obama's top advisers on green policy. Watch GE take off after cap and trade is passed. Another scam in the making.

[SangZe]

Of course. We were very stupid to think things would change. We got rid of Bush, and the CEOs of his crumbling economy got even richer while the rest of us got a lot poorer. Obama has quickly proven a joke.

[StephenJK]

We've been led astray. Seperated from our true and loving self. Science, materialism and an objection of spirit have led us to this point. Some, if not most, embrace this rejection of our true and loving self. It's time to embrace the coming REAL change.