Welch calls on bank executives to skip bonuses, bypass Bush administration loophole |
Sunday, 21 December 2008 19:00 |
WASHINGTON, DC - Rep. Peter Welch is calling for top banking executives to abide by strict compensation limits Congress intended for recipients of federal bailout money, despite a last-minute loophole orchestrated by the Bush administration. WASHINGTON, DC - Rep. Peter Welch is calling for top banking executives to abide by strict compensation limits Congress intended for recipients of federal bailout money, despite a last-minute loophole orchestrated by the Bush administration. During last-minute negotiations leading up to the passage of the $700 billion Emergency Economic Stabilization Act in October, Treasury Secretary Henry Paulson insisted on a one-sentence change that effectively mooted any caps on executive compensation to banks receiving money through the Troubled Asset Relief Program, according to the Washington Post. Additionally, the Associated Press reported Sunday that TARP recipients doled out nearly $1.6 billion in salaries and bonuses to top executives last year. December 16, 2008
Mr. John J. Mack
Chairman and Chief Executive Officer Morgan Stanley
1585 Broadway
New York, NY 10036-8200
As Members of Congress acutely concerned with taxpayer protection, we were shocked to learn that companies currently participating in the Troubled Asset Relief Program (TARP) are able to skirt executive compensation limits included in the Emergency Economic Stabilization Act (EESA) using a loophole inserted into the legislation by the Bush administration late in bill negotiations, as detailed in the 12/15/2008 Washington Post. These taxpayer protections are essential to ensuring balance in and the success of the TARP, and we urge you to voluntarily abide by the executive compensation limits contained in the EESA, starting by renouncing bonuses for all your top executives. The people we represent vehemently object to the use of their taxpayer dollars, directly or indirectly, to pay bonuses to executives at institutions receiving federal bailout money. We note that Goldman Sachs, the recipient of $10 billion in bailout funds, recently renounced bonuses for its top executives. We urge you to do the same, voluntarily and immediately. Reviving our economy will take hard work, cooperation, and shared sacrifice. It would be a very good signal to the American taxpayers that you agreed, which you can demonstrate by following the Goldman Sachs example. |