bankers give back bailout money after being told to take a pay cut

[undercutter2006]

Louisiana banks that took loans tied to the federal financial bailout are now giving back the money in light of new rules that drastically shrink the paychecks of their top officers.


Executives of banks that took bailout money are now barred from receiving cash bonuses or incentives until the loans are repaid to the Treasury Department, according to an amendment in the $787 billion economic stimulus bill signed into law Tuesday by President Barack Obama.


The new rule does not sit well with many bankers, including those in Louisiana, who rely on bonuses for a significant portion of their take-home pay.


http://www.nola.com/timespic/stories/index.ssf?/base/news-1/1234938207272770.xml&coll=1

[lpbk2713]

1. Ironic.

There seems to be some sort of justice in having bankers
be on the receiving end of the way bankers do business.





:rofl: :rofl:

[NC_Nurse]

2. Fine. They must not have needed it, so why did they get it in the first place?

[w4rma]

3. Because they didn't actually need the money. It's a *scam*!

Because if they need the money then they are liable to a stockholder lawsuit that they took actions that wouldn't benefit the company.

[peace13]

4. The money was only given to healthy banks.

Go figure.

[Frustratedlady]

5. Bringing the snakes out of the holes to show their true color, eh?

That's the way to go. Keep those clients and constituents' needs at the top of your list. You betcha!

[jimshoes]

6. They obviously didn't need the money all

that badly. Smells like a scam of giant proportions.

[Historic NY]

7. Thats good give it all back. The money wasn't supposed to bailout ...

out the CEO

[Still Sensible]

8. Great

the obvious conslusion is they didn't need the money anyway. Good for them and good for us.

[rrneck]

9. Fine, representatives from the

SEC will be there in the morning to determine whether you actually needed the money or not. If you needed it it is because you ran your bank into the ground and you're fired. If not, you get to go to jail.

It seems I'm not in an accommodating mood today. :grr:

[FarCenter]

10. 359 banks and other financial institutions have taken TARP money

"Treasury has completed CPP transactions with 359 United States financial institutions and Community Development Financial Institutions in 45 states and Puerto Rico."

From the 2/6 Tranche Report.

http://www.treasury.gov/initiatives/eesa/tranche-reports.shtml