Obama Administration Plans Big Pay Cuts At Bailout Firms

The Obama administration plans to order companies that received huge government bailouts last year to sharply cut the compensation of their highest paid executives.

A person familiar with the decision, who spoke on condition of anonymity because it has not been announced, says the seven companies that received the most assistance will have to cut the annual salaries of their 25 highest-paid executives by an average of about 90 percent from last year. This person says the Treasury Department will announce the deep pay cuts within the next few days.

The seven companies are: Bank of America Corp., American International Group Inc., Citigroup Inc., General Motors, GMAC, Chrysler and Chrysler Financial.

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  • by Derek Location: Greenville on Oct 27, 2009 at 06:40 PM
    That's not the point OSOC, I am sure the banks were salavating at the mouth since they were deregularized.....because they would sell a mortgage to another bank. You can blame Dodds and Frank for deregulating, but were they the ones that physically brought people into the mortgage centers and made them sign something that the general public has no clue? No. That was the home buyers fault. You are being to narrow minded in this arguement. I guess now you will rebuttle and say 'it was Dodd and Franks parents fault for having children....and so on.'. Remember - just because something is unregulated, it doesn't mean you have to buy into it. Do you know how often mortgages are bought and sold in between banks? Yeah, that's capitalism - you know 'for profit'.... Clearly you have no idea how mortgages work, because the country almost bankrupted itself. ie. no cash flow = no tax revenue. (didn't fox tell you that?)
  • by Obama Snake Oil Co Location: jWashington on Oct 26, 2009 at 10:19 AM
    Derek, I asked who and you know who signed it. Bush did the tarp, Obama did the stimulus. Blame it on capitolism? Are you a communist? The stimulus hasn't even come into full play and they wanted another one? You getting this? I don't buy "bankrupted the country", it would have bankrupted companies that should have. The bailout was to cover what Franks and Dodd had screwed up with. You cannot give loans to people that are not employed, pretty simple math there.
  • by Derek Location: Greenville on Oct 26, 2009 at 07:26 AM
    No. but you've seen capitalism run unregulated, and it almost bankrupted the country, much like Iceland. Are you referring to Bush's signature or Obama's? Because they both initiated a bailout.
  • by Obama Snake Oil Co Location: Washington on Oct 25, 2009 at 05:17 AM
    Derek, are you a communist? Did you know whos signiture was on the bailout? Do you know what party endorsed this?
  • by Derek Location: Greenville on Oct 24, 2009 at 10:21 AM
    Apparently you bloggers prefer to see these executives bankrupt the country and laugh about it....oh wait, that's the beauty of capitalism. White-collar crime = slap in the hand offence. right sherrie?
  • by Anonymous on Oct 23, 2009 at 02:23 PM
    We shouldn't have propped up these institutions to begin with our tax dollars. Capitalism is about survival of the fittest and competition. These companys that put their tin cup out should be allowed to collapse. In addition..if their companies were so poorly managed why reward incompetence with a fat bonus to their exec's?
  • by sherrie Location: charlotte on Oct 23, 2009 at 01:50 PM
    fascism Definition: dictatorial movement: any movement, ideology, or attitude that favors dictatorial government, centralized control of private enterprise, repression of all opposition, and extreme nationalism Merriam Webster: a political philosophy, movement, or regime (as that of the Fascisti) that exalts nation and often race above the individual and that stands for a centralized autocratic government headed by a dictatorial leader, severe economic and social regimentation, and forcible suppression of opposition Hmmm, strong central government, suppression of opposition, control of private enterprise...sound familiar? Anyone, anyone?
  • by ace Location: plymouth on Oct 23, 2009 at 05:06 AM
    This sounds good but if the bonus is considered part of their salary then this is still just hot air. If they have a $1,000,000 salary and they get $1,000,000 bonus less 90% they will still get $100,000 for helping to send this country into a finicial wreck. They should get nothing! Take the bonus and give it back to the share holders for all the drama they have put them through.
  • by Cletus Location: New Bern on Oct 22, 2009 at 06:51 AM
    Accepting the bail out money was a dangerous precedent. Many of us (taxpayers) made our noise against this but were ignored. Thank Nancy Pelosi, President Obama, Vice President Biden and the Senate and Congress for bringing us closer to communism than at any other point in history. If you are in the governments pocket, look out. They will dictate their terms and make you comply. All others will be subject to their whims later on.
  • by RealityCheck Location: Washington park on Oct 22, 2009 at 06:34 AM
    What authority does the B. Hussein Obama administration have dictate executive pay? Hopefully, companies that accepted loans didn't sign away their autonomy do a socialist.

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