Where'd all that money go? Bank execs testify Wednesday

[babylonsister]

Where'd all that money go? Bank execs testify Wednesday

By Lisa Zagaroli | McClatchy Newspapers


WASHINGTON — The nation's largest banks, battling an image of jet-setting executives with multimillion-dollar salaries, will face tough scrutiny on Wednesday from lawmakers who are struggling to understand the financial health of the institutions and the impact of a $700 billion taxpayer bailout.

Eight chief executives are scheduled to testify at a hearing of the House Financial Services Committee.

Lawmakers are hoping for a comprehensive accounting of what the banking giants did with the money they got from the Troubled Asset Recovery Program and whether it appears to be stabilizing the financial services industry.

Taking a cue from congressional scrutiny of auto industry executives who came to Washington hat in hand, the bankers are expected to avoid any unwanted attention about corporate travel. It'll be harder, however, for them to dodge questions about their executive compensation packages that include millions in bonuses.

"If they didn't get a bonus, would they knock off early on Wednesday?" said Rep. Barney Frank, D-Mass., the committee's chairman, who like President Barack Obama is pushing for more modest compensation packages set with shareholder input.

The House hearing will be watched on both sides of the Capitol, where lawmakers are struggling to justify how federal bailouts and an $827 billion economic stimulus bill would help typical citizens struggling to stay afloat at home.

more...

http://www.mcclatchydc.com/politics/story/61854.html