ALSO CALLS ON PAUSLON TO AVOID EMPLOYMENT OR INVOLVEMENT WITH FIRMS PARTICIPATING IN BAILOUT

Washington, Dec 22, 2008 - “It is outrageous that financial institutions benefiting from the taxpayer bailout awarded their top executives $1.6 billion in compensation last year,” said Rep. Cliff Stearns (R-FL). “I call upon the Treasury Secretary to end taxpayer assistance to those firms that rewarded their executives for bringing them to insolvency. If that is not done, then Congress should take up the issue.”

An Associated Press (AP) analysis found that firms receiving the taxpayer bailout provided nearly $1.6 billion in compensation to their top executives. The analysis found that this compensation included bonuses, stock options, use of company jets, home security systems, and memberships in country clubs.

“I can understand rewarding someone for doing a good job, but these executives guided these firms to near extinction and then turned to taxpayers for more funds,” added Stearns. “According to the AP, the amount given to about 600 executives would cover the bailout costs for many of the 116 banks that accepted taxpayer dollars in the bailout.”

Stearns also called on Treasury Secretary Pauslon to reject any future job or involvement with any firm participating in the bailout. “I am concerned that the bailout of these financial institutions lacks transparency and a workable means of clearly avoiding a conflict of interest,” concluded Stearns. “By taking this step, Paulson could set the tone that ‘business as usual’ on Wall Street has ended.”