Finally, some accountability? - The Orange Mane

watermock · 02-04-2009, 02:31 AM

http://blogs.usatoday.com/ondeadline...mits-comi.html

New limits coming on executives' pay for firms getting bailout funds
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New limits on executive pay will be announced tomorrow for companies receiving taxpayer money from the bailout program, President Obama said tonight.

"One of the things that that we're going to do tomorrow is talk about the need to control executive compensation for companies that are taking money from the federal government," he said in an interview with "NBC Nightly News. "If the taxpayers are helping you, then you've got certain responsibilities to not be living high on the hog."

Top executives already face compensation limits if their companies received funds from the Troubled Asset Relief Program. But Congress wants more restrictions. Lawmakers howled after it was revealed that Wall Street firms paid bonuses of more than $18 billion in 2008 despite the financial and economic crisis.

One committee wants to cap the highest salary at a government-assisted institutions at $400,000. (That's the annual salary of the President of the United States.)

Here's more.

Meanwhile, the U.S. Treasury continues to invest money from the $700 billion TARP.

Today the Treasury announced that 42 more banks have received $1.15 billion in exchange for preferred shares of stock. For the first time, banks in Arizona and Nebraska participated.

Treasury stresses that the Capital Purchase Program is "a means to directly infuse capital into healthy, viable banks with the goal of increasing the flow of financing available to small businesses and consumers."

Here are the news release and list of banks, along with details (pdf) of the transactions.

Update at 8:25 p.m. ET: CEOs of some major banks that have received bailout funds have been invited to appear next week at a House hearing.

On Feb. 11, the House Financial Services Committee wants to question the top of executives of Bank of America, Wells Fargo, JPMorgan, Citigroup, Goldman Sachs, Morgan Stanley, State Street and Bank of New York Mellon about how their banks have used funding from the TARP, the Troubled Asset Relief Program.

Posted by Michael Winter at 06:47 PM/ET, February 03, 2009 in Money | Permalink
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watermock · 02-04-2009, 02:33 AM

By Daniel Wagner and Matt Apuzzo, Associated Press
Wells Fargo (WFC) abruptly canceled Tuesday a pricey Las Vegas casino junket for employees after a torrent of criticism that it was misusing $25 billion in taxpayer bailout money.
The company initially defended the trip after The Associated Press reported it had booked 12 nights beginning Friday at the Wynn Las Vegas and the Encore Las Vegas. But within hours, investigators and lawmakers on Capitol Hill had scorned the bank, and the company canceled.

The conference is a Wells Fargo tradition. Previous all-expense-paid trips have included helicopter rides, wine tasting, horseback riding in Puerto Rico and a private Jimmy Buffett concert in the Bahamas for more than 1,000 of the company's top employees and guests.

"In light of the current environment, we have now decided to cancel this event as well," the company said Tuesday night in a news release that also said the it had never planned to use taxpayer bailout money for the trip.

Corporate retreats have attracted criticism since the bank bailout last fall. Congress scolded insurance giant American International Group Inc. for spending $440,000 on spa treatments for executives just days after the company took $85 billion from taxpayers. AIG has since canceled all such outings.

Because of the bailout and the recession, other banks have canceled employee outings, including Morgan Stanley, which informed employees Monday that an appreciation trip to Monte Carlo was off.

Wells Fargo, however, had not. And initially, the company indicated it had no plans to cancel.

"Recognition events are still part of our culture," spokeswoman Melissa Murray said Tuesday afternoon. "It's really important that our team members are still valued and recognized."

In previous years, top Wells Fargo loan officers were treated to performances by Cher, Jay Leno and Huey Lewis. One year, the company provided fortune tellers and offered camel rides, said Debra Rickard, a former Wells Fargo mortgage employee from Colorado who attended the events regularly until she left the company in 2004.

Every night when employees returned to their rooms, there was a new gift on their pillows, she said.

"I was amazed with just how lavish it was," Rickard said. "We stayed in top hotels, the entertainment was just unbelievable, and there were awards — you got plaques or trophies."

Kevin Waetke, another spokesman for Wells Fargo, said the Las Vegas trip provided a "unique opportunity" for Wells Fargo employees and employees of newly acquired bank Wachovia Corp., "to focus on continuing to do all we can for U.S. homeowners."

On Capitol Hill, lawmakers disagreed.

"Let's get this straight: These guys are going to Vegas to roll the dice on the taxpayer dime?" said Rep. Shelley Moore Capito, a West Virginia Republican who sits on the House Financial Services Committee. "They're tone deaf. It's outrageous."

The trip was to come on the heels of this week's announcement that Wells Fargo lost more than $2.3 billion in the last three months of 2008.

"Now, they're sending employees on junkets to Las Vegas. You do the math," said New York Attorney General Andrew Cuomo, who recently sought information about Wells Fargo's bonuses as part of his investigation into the banking industry.

Rooms at the Wynn and the Encore are consistently among the most expensive in Las Vegas. The $2.3 billion Encore opened in December. Its decor includes a 27-foot Asian dragon made from 90,000 Swarovski crystals and artwork by Colombian artist Fernando Botero. One of the restaurants features Frank Sinatra's 1953 Oscar.

Both properties have high-end retail stores, including Manolo Blahnik at Wynn and Chanel at Encore.

Wells Fargo reversed course Tuesday evening. The company said it had planned to scale back the Las Vegas trip but decided to cancel it, just as it had already done for other events scheduled for this year.

The statement did not say what, other than a four-night sales conference, the company had planned for its 12 nights in Las Vegas. The company said, however, it did not plan any other employee recognition events this year.

Morgan Stanley, another $25 billion bailout recipient, had been planning to send its top employees to a hotel in Monte Carlo this April. A Morgan Stanley travel agent said that the trip, along with a similar event in the Bahamas, was still on as of Tuesday afternoon. But company spokesman Jim Wiggins said employees were told Monday that the events were canceled. He said the travel agent was incorrect.

Associated Press writer Oskar Garcia in Las Vegas contributed to this report.

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

frerottenextelway · 02-04-2009, 05:06 AM

From the Times:

Quote:

The Obama administration is expected to impose a cap of $500,000 on the compensation of top executives at companies that receive large amounts of federal bailout money, according to people familiar with the plan.

Under new rules to be announced by the Treasury Department as early as Wednesday, executives would also be prohibited from receiving any bonuses above their base pay, except for normal stock dividends.

The new rules would be far tougher than any restrictions imposed during the Bush administration, and they could force executives in the months ahead to accept deep reductions in their current pay.

Loads of credit to Senator Claire McCaskill for getting the ball rolling with this.

TailgateNut · 02-04-2009, 06:08 AM

There IS a difference between success and greed, especially if someone is greedy without being succesful.

frerottenextelway · 02-04-2009, 03:22 PM

Many GOP are going nuts over this. The poor execs will only be able to earn a half million dollars a year if their company needs to be salvaged by the tax payers. Those poor ****ing souls.

SonOfLe-loLang · 02-04-2009, 03:26 PM

Quote:

Originally Posted by frerottenextelway

From the Times:

Loads of credit to Senator Claire McCaskill for getting the ball rolling with this.

And Bernie Sanders

SonOfLe-loLang · 02-04-2009, 03:26 PM

Quote:

Originally Posted by frerottenextelway

Many GOP are going nuts over this. The poor execs will only be able to earn a half million dollars a year if their company needs to be salvaged by the tax payers. Those poor ****ing souls.

You don't think execs should be paid millions are dollars for running companies straight into the ground? How un-american of you

I do love this, but these snakes always find a way to get their money. Hopefully all the loopholes will be closed.

frerottenextelway · 02-04-2009, 03:33 PM

Quote:

Originally Posted by SonOfLe-loLang

You don't think execs should be paid millions are dollars for running companies straight into the ground? How un-american of you

I do love this, but these snakes always find a way to get their money. Hopefully all the loopholes will be closed.

I just feel so bad for those execs, how will they be able to feed their families?

frerottenextelway · 02-04-2009, 03:34 PM

Quote:

Originally Posted by SonOfLe-loLang

And Bernie Sanders

Yep. Love both of those Senators.

Hotrod · 02-04-2009, 03:34 PM

This is a good sign that Barry and Congress atleast want to try and get the ship righted. Kudos to you Barry & company.

ak1971 · 02-04-2009, 03:51 PM

I agree with putting limits on what they make if they take TARP $$$.
The problem is that if the best CEO is going to make $500K at a TARP company, and say a non-TARP company will pay them $3MM, the Best CEO is going to chase the money, and the talent will go elsewhere.

cutthemdown · 02-04-2009, 04:01 PM

Quote:

Originally Posted by ak1971

I agree with putting limits on what they make if they take TARP $$$.
The problem is that if the best CEO is going to make $500K at a TARP company, and say a non-TARP company will pay them $3MM, the Best CEO is going to chase the money, and the talent will go elsewhere.

exactly bailed out companies will have a tough time recruiting the top guys.

Dukes · 02-04-2009, 04:08 PM

Quote:

Originally Posted by cutthemdown

exactly bailed out companies will have a tough time recruiting the top guys.

They probably should have failed anyway.

SonOfLe-loLang · 02-04-2009, 04:10 PM

Quote:

Originally Posted by ak1971

I agree with putting limits on what they make if they take TARP $$$.
The problem is that if the best CEO is going to make $500K at a TARP company, and say a non-TARP company will pay them $3MM, the Best CEO is going to chase the money, and the talent will go elsewhere.

The talent...ok, so a CEO runs his company into the ground and needs a HUGE government bailout to survive...and this is the "talent

"

orinjkrush · 02-04-2009, 04:22 PM

there is NO relationship between CEO TALENT and organizational performance. its all urban myth. we have 300 million Americans. you tell me only a handful could run a several billion dollar company? don't think so. they all sit on each other's boards and vote each other in. bastages.

we need to track where every penny of the first installment went. then we will see who the "bad" banks, investment houses and insurers are.

watermock · 02-04-2009, 06:46 PM

Quote:

Originally Posted by orinjkrush

there is NO relationship between CEO TALENT and organizational performance. its all urban myth. we have 300 million Americans. you tell me only a handful could run a several billion dollar company? don't think so. they all sit on each other's boards and vote each other in. bastages.

we need to track where every penny of the first installment went. then we will see who the "bad" banks, investment houses and insurers are.

Indeed... don't tell me there's only 1 man for the job.

give me a JC Penny's suit and commercial air. I'm ready.

I'd hire some bittter biotches that know the game/.

watermock · 02-04-2009, 07:00 PM

Quote:

Quote:
“I don’t want to send a message to the American people that there are two sets of standards, one for powerful people and one for ordinary folks who are working every day and paying their taxes.”

..

watermock · 02-04-2009, 07:05 PM

Quote:

Originally Posted by ak1971
I agree with putting limits on what they make if they take TARP $$$.
The problem is that if the best CEO is going to make $500K at a TARP company, and say a non-TARP company will pay them $3MM, the Best CEO is going to chase the money, and the talent will go elsewhere.

SO WHAT? What talent that thrived in derivatives and CDO's and Short, selling his own stock, EXPECTING A BAILOUT. ENOUGH IS ENOUGH.

wE ILL SOON HAVE 5 BANKS, ALL MEMBERS OF THE FED.

ARE YOU THAT STUPID?

Fedaykin · 02-04-2009, 07:50 PM

This is a great move. It will force CEOs to only take bailout if they really have to, and it will help get people who actually care about their jobs into these positions. The greedy incompotents will move on.

frerottenextelway · 02-04-2009, 08:03 PM

Quote:

Originally Posted by ak1971

I agree with putting limits on what they make if they take TARP $$$.
The problem is that if the best CEO is going to make $500K at a TARP company, and say a non-TARP company will pay them $3MM, the Best CEO is going to chase the money, and the talent will go elsewhere.

Frankly, I'd have more confidence in someone willing to only (only?) make a half mil a year and is more interested in turning the company around than someone who is there just to get billions.

Chupacabra · 02-04-2009, 08:04 PM

I didn't agree with the bailouts. And I don't agree with the government continuing to meddle in the private sector. This is a slippery slope. I don't like the precedent that it sets.

Chupacabra · 02-04-2009, 08:04 PM

Quote:

Originally Posted by Fedaykin

This is a great move. It will force CEOs to only take bailout if they really have to, and it will help get people who actually care about their jobs into these positions. The greedy incompotents will move on.

Caring about one's job doesn't increase one's company's performance. Greed is good.

Chupacabra · 02-04-2009, 08:06 PM

Quote:

Originally Posted by frerottenextelway

Frankly, I'd have more confidence in someone willing to only (only?) make a half mil a year and is more interested in turning the company around than someone who is there just to get billions.

CEOs salaries are relatively normal executive salaries. They get the bulk of their treasure from bonuses, as a salesman gets the bulk of his income from commission. This is going to simply drive out the talent to other firms. Not to mention many mega millionaire CEOs use their millions of capital creating jobs and opportunities for people.

Spider · 02-04-2009, 08:11 PM

Quote:

Originally Posted by Chupacabra

I didn't agree with the bailouts. And I don't agree with the government continuing to meddle in the private sector. This is a slippery slope. I don't like the precedent that it sets.

that precedent was set back in the 30's ..............Welcome to the real world

Chupacabra · 02-04-2009, 08:11 PM

The firms should have never been bailed out. The companies doomed to fail would have and their executives wouldn't get their bonuses.

This is scary. Just let liberal democrats who openly advocate nationalizing big business (like the crazies who decry Exxon for doing what they are in business to do, profit) start setting salaries. As the bailouts were portrayed as absolutely necessary with scare tactics, even conservatives agree with this government expansion. Just because the bailouts were wrong, but happened, we shouldn't throw our hands up and say, "well, if they are already going to bail these companies out, then the government should control them." Two wrongs doesn't make a right. The government just needs to stop.

02-04-2009, 02:31 AM	#1
watermock "Hoodie Jr" "Hug me!" Join Date: Jul 2001 Location: Hot Springs, Ouachitah Posts: 77,090	Finally, some accountability? http://blogs.usatoday.com/ondeadline...mits-comi.html New limits coming on executives' pay for firms getting bailout funds Buzz up!Like this story? Share it with Yahoo! Buzz New limits on executive pay will be announced tomorrow for companies receiving taxpayer money from the bailout program, President Obama said tonight. "One of the things that that we're going to do tomorrow is talk about the need to control executive compensation for companies that are taking money from the federal government," he said in an interview with "NBC Nightly News. "If the taxpayers are helping you, then you've got certain responsibilities to not be living high on the hog." Top executives already face compensation limits if their companies received funds from the Troubled Asset Relief Program. But Congress wants more restrictions. Lawmakers howled after it was revealed that Wall Street firms paid bonuses of more than $18 billion in 2008 despite the financial and economic crisis. One committee wants to cap the highest salary at a government-assisted institutions at $400,000. (That's the annual salary of the President of the United States.) Here's more. Meanwhile, the U.S. Treasury continues to invest money from the $700 billion TARP. Today the Treasury announced that 42 more banks have received $1.15 billion in exchange for preferred shares of stock. For the first time, banks in Arizona and Nebraska participated. Treasury stresses that the Capital Purchase Program is "a means to directly infuse capital into healthy, viable banks with the goal of increasing the flow of financing available to small businesses and consumers." Here are the news release and list of banks, along with details (pdf) of the transactions. Update at 8:25 p.m. ET: CEOs of some major banks that have received bailout funds have been invited to appear next week at a House hearing. On Feb. 11, the House Financial Services Committee wants to question the top of executives of Bank of America, Wells Fargo, JPMorgan, Citigroup, Goldman Sachs, Morgan Stanley, State Street and Bank of New York Mellon about how their banks have used funding from the TARP, the Troubled Asset Relief Program. Posted by Michael Winter at 06:47 PM/ET, February 03, 2009 in Money \| Permalink Buzz up!

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02-04-2009, 02:33 AM	#2
watermock "Hoodie Jr" "Hug me!" Join Date: Jul 2001 Location: Hot Springs, Ouachitah Posts: 77,090	By Daniel Wagner and Matt Apuzzo, Associated Press Wells Fargo (WFC) abruptly canceled Tuesday a pricey Las Vegas casino junket for employees after a torrent of criticism that it was misusing $25 billion in taxpayer bailout money. The company initially defended the trip after The Associated Press reported it had booked 12 nights beginning Friday at the Wynn Las Vegas and the Encore Las Vegas. But within hours, investigators and lawmakers on Capitol Hill had scorned the bank, and the company canceled. The conference is a Wells Fargo tradition. Previous all-expense-paid trips have included helicopter rides, wine tasting, horseback riding in Puerto Rico and a private Jimmy Buffett concert in the Bahamas for more than 1,000 of the company's top employees and guests. "In light of the current environment, we have now decided to cancel this event as well," the company said Tuesday night in a news release that also said the it had never planned to use taxpayer bailout money for the trip. Corporate retreats have attracted criticism since the bank bailout last fall. Congress scolded insurance giant American International Group Inc. for spending $440,000 on spa treatments for executives just days after the company took $85 billion from taxpayers. AIG has since canceled all such outings. Because of the bailout and the recession, other banks have canceled employee outings, including Morgan Stanley, which informed employees Monday that an appreciation trip to Monte Carlo was off. Wells Fargo, however, had not. And initially, the company indicated it had no plans to cancel. "Recognition events are still part of our culture," spokeswoman Melissa Murray said Tuesday afternoon. "It's really important that our team members are still valued and recognized." In previous years, top Wells Fargo loan officers were treated to performances by Cher, Jay Leno and Huey Lewis. One year, the company provided fortune tellers and offered camel rides, said Debra Rickard, a former Wells Fargo mortgage employee from Colorado who attended the events regularly until she left the company in 2004. Every night when employees returned to their rooms, there was a new gift on their pillows, she said. "I was amazed with just how lavish it was," Rickard said. "We stayed in top hotels, the entertainment was just unbelievable, and there were awards — you got plaques or trophies." Kevin Waetke, another spokesman for Wells Fargo, said the Las Vegas trip provided a "unique opportunity" for Wells Fargo employees and employees of newly acquired bank Wachovia Corp., "to focus on continuing to do all we can for U.S. homeowners." On Capitol Hill, lawmakers disagreed. "Let's get this straight: These guys are going to Vegas to roll the dice on the taxpayer dime?" said Rep. Shelley Moore Capito, a West Virginia Republican who sits on the House Financial Services Committee. "They're tone deaf. It's outrageous." The trip was to come on the heels of this week's announcement that Wells Fargo lost more than $2.3 billion in the last three months of 2008. "Now, they're sending employees on junkets to Las Vegas. You do the math," said New York Attorney General Andrew Cuomo, who recently sought information about Wells Fargo's bonuses as part of his investigation into the banking industry. Rooms at the Wynn and the Encore are consistently among the most expensive in Las Vegas. The $2.3 billion Encore opened in December. Its decor includes a 27-foot Asian dragon made from 90,000 Swarovski crystals and artwork by Colombian artist Fernando Botero. One of the restaurants features Frank Sinatra's 1953 Oscar. Both properties have high-end retail stores, including Manolo Blahnik at Wynn and Chanel at Encore. Wells Fargo reversed course Tuesday evening. The company said it had planned to scale back the Las Vegas trip but decided to cancel it, just as it had already done for other events scheduled for this year. The statement did not say what, other than a four-night sales conference, the company had planned for its 12 nights in Las Vegas. The company said, however, it did not plan any other employee recognition events this year. Morgan Stanley, another $25 billion bailout recipient, had been planning to send its top employees to a hotel in Monte Carlo this April. A Morgan Stanley travel agent said that the trip, along with a similar event in the Bahamas, was still on as of Tuesday afternoon. But company spokesman Jim Wiggins said employees were told Monday that the events were canceled. He said the travel agent was incorrect. Associated Press writer Oskar Garcia in Las Vegas contributed to this report. Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

02-04-2009, 06:08 AM	#4
TailgateNut Bleedin' orange! .......as much as tebonites Join Date: Dec 2002 Location: Mile High Posts: 20,018 Adopt-a-Bronco: Howard Griffith	There IS a difference between success and greed, especially if someone is greedy without being succesful.

02-04-2009, 03:22 PM	#5
frerottenextelway █████ █████ Join Date: Dec 2002 Location: █████ Posts: 7,892 Adopt-a-Bronco: ██	Many GOP are going nuts over this. The poor execs will only be able to earn a half million dollars a year if their company needs to be salvaged by the tax payers. Those poor ****ing souls.

02-04-2009, 03:34 PM	#10
Hotrod Self Appointed Expert aka Dortoh Join Date: Aug 2003 Posts: 25,136 Adopt-a-Bronco: Miss I	This is a good sign that Barry and Congress atleast want to try and get the ship righted. Kudos to you Barry & company.

02-04-2009, 03:51 PM	#11
ak1971 uhhhh Join Date: Oct 2003 Posts: 5,550	I agree with putting limits on what they make if they take TARP $$$. The problem is that if the best CEO is going to make $500K at a TARP company, and say a non-TARP company will pay them $3MM, the Best CEO is going to chase the money, and the talent will go elsewhere.

02-04-2009, 04:22 PM	#15
orinjkrush ... Prospects for the future... Join Date: Jan 2003 Location: DistrictOfCorruption Posts: 4,919 Adopt-a-Bronco: Ben Garland	there is NO relationship between CEO TALENT and organizational performance. its all urban myth. we have 300 million Americans. you tell me only a handful could run a several billion dollar company? don't think so. they all sit on each other's boards and vote each other in. bastages. we need to track where every penny of the first installment went. then we will see who the "bad" banks, investment houses and insurers are.

02-04-2009, 07:50 PM	#19
Fedaykin Ring of Famer Join Date: Nov 2006 Posts: 3,879 Adopt-a-Bronco: None	This is a great move. It will force CEOs to only take bailout if they really have to, and it will help get people who actually care about their jobs into these positions. The greedy incompotents will move on.

02-04-2009, 08:04 PM	#21
Chupacabra Goat Sucker Join Date: Oct 2005 Posts: 565	I didn't agree with the bailouts. And I don't agree with the government continuing to meddle in the private sector. This is a slippery slope. I don't like the precedent that it sets.

02-04-2009, 08:11 PM	#25
Chupacabra Goat Sucker Join Date: Oct 2005 Posts: 565	The firms should have never been bailed out. The companies doomed to fail would have and their executives wouldn't get their bonuses. This is scary. Just let liberal democrats who openly advocate nationalizing big business (like the crazies who decry Exxon for doing what they are in business to do, profit) start setting salaries. As the bailouts were portrayed as absolutely necessary with scare tactics, even conservatives agree with this government expansion. Just because the bailouts were wrong, but happened, we shouldn't throw our hands up and say, "well, if they are already going to bail these companies out, then the government should control them." Two wrongs doesn't make a right. The government just needs to stop.