Chris Dodd's Tarp amendment exempted the AIG bonuses????!!!

[Hoopla Phil]

Just herd this. Is it true???

[Skidmore]

1. Which herd are you running with?

[Hoopla Phil]

2. Is it true???

[babylonsister]

6. Is it? Why don't you try to find out? nt

[TheCoxwain]

3. Give him/her a break .. it's probably a typo... we all make our fair share of typos

[marketcrazy1]

4. this appears to be correct

question is will he be called out on this fuck up....... not holding my breath!!

[movonne]

5. And where did you get this news????

[biopowertoday]

9. You missed the news from yesterday.

[leftchick]

11. he watered it down

a lot...

<snip>

The rules effectively provide a carve-out for smaller and regional banks that have received limited infusions of cash. But virtually every major U.S. financial firm would be affected by the most stringent restrictions.

Any financial company that has received taxpayer funds would also face strict limits on "excessive expenditures" including entertainment, the use of corporate jets and office renovations.

And it would require the TARP recipients to hold a "Say on Pay" or an annual shareholder vote on approval of executive compensation.

Democratic senators had wanted to impose even stricter conditions. The Senate bill would have required bonuses already handed out to executives at TARP firms to be paid back, cap all executive compensation at TARP firms at $400,000 and ban any bonus for the top 25 employees at all TARP firms. None of this language appeared in the final legislation.

On the other hand, the Obama administration would have reserved the toughest conditions for companies that received firm-specific solutions under the TARP. At the moment, that would be limited to just Citigroup, Bank of America and American International Group.

The restrictions were finalized a day after top Wall Street executives faced angry questioning from House lawmakers at a TARP oversight hearing.

http://online.wsj.com/article/SB123449029905980509.html

[otohara]

7. Fox Business is The Source

Wingnut sites going bonkers over this one.

Amid AIG Furor, Dodd Tries to Undo Bonus Protections He Put In

Senator Chris Dodd (D-Conn.) on Monday night floated the idea of taxing American International Group (AIG) bonus recipients so the government could recoup some or all of the $450 million the company is paying to employees in its financial products unit. Within hours, the idea spread to both houses of Congress, with lawmakers proposing an AIG bonus tax.

The move represents somewhat of an about-face for the Senator.http://www.foxbusiness.com/story/markets/industries/finance/dodd-cracks-aig---time/

While the Senate was constructing the $787 billion stimulus last month, Dodd added an executive-compensation restriction to the bill. That amendment provides an “exception for contractually obligated bonuses agreed on before Feb. 11, 2009” -- which exempts the very AIG bonuses Dodd and others are now seeking to tax.




Sen. Chris Dodd (D-Conn.), chairman of the Senate Banking Committee on Monday suggested the idea of taxing AIG bonus recipients so the government could claw back the $165 million the company is paying in bonuses to members of its financial products unit, reports FOX Business.

"One way or another, we're going to try to figure out how to get these resources back," said Dodd at a banking committee hearing.http://rawstory.com/news/2008/Senate_plans_on_introducing_bill_to_0317.html

[biopowertoday]

10. AND so is the Huff post.

[Uzybone]

12. Actually the New York Times as well

http://www.nytimes.com/2009/03/15/business/15AIG.html?hp


Dodd needs to be under some kleig lights answering questions.

[biopowertoday]

8. This info was in the Huff post article yesteday..........

http://www.huffingtonpost.com/2009/03/16/national-outrage-forces-o_n_175554.html

[Hoopla Phil]

13. Thanks for the info folks.

I had heard this in the car during a news break on the radio. I was very skeptical about it.


Thanks again

[Joanne98]

14. Chris Dodd again.

[jorae28]

15. So what did the SENATE approve with this TARP amendment?

Friday, 6 February 2009 - 01:44
UPDATE: US Senate Approves TARP Executive-Comp Limits Amendments

By Patrick Yoest
Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- The Senate approved a pair of amendments Thursday that would tighten executive-compensation limits for companies receiving funds from the Treasury Department’s Troubled Asset Relief Program, or TARP, including a $400,000 executive compensation limit.

They approved an amendment proposed by Senate Banking Chairman Christopher Dodd, D-Conn., that would sharply curtail bonuses for firms receiving TARP funds. It also approved an amendment offered by Sens. Claire McCaskill, D-Mo., and Bernard Sanders, I-Vt., that would establish an annual limit of $400,000 -- equal to salary of the U.S. president -- on compensation for any employee at a firm receiving TARP funds.

Both were agreed to by voice vote.

The amendments follow a Wednesday announcement by President Barack Obama that he would impose a $500,000 compensation limit on top executives at firms that receive "exceptional" government aid.

"If you don’t do something about this, we will never be able to build confidence and optimism people need to feel about the program," Dodd said.

The McCaskill-Sanders amendment would not be retroactive, so employees that had already received more than $400,000 in the calendar year in which the legislation became law would not have to forgo the income they already earned. Rather, they would be prohibited from receiving more income in that calendar year. The amendment only deals with employees of firms receiving TARP funds and would be in effect only as long as such firms received the government funds.

Dodd’s amendment would prohibit firms receiving TARP funds from paying bonuses to their 25 highest-paid employees. The Treasury Department could increase the number of employees prohibited from receiving bonuses at firms that receive TARP funds. It also would require a retroactive review of those firms to determine if they had given improper bonuses while receiving TARP funds.

Another provision in the amendment would allow the government to "claw back," or rescind, bonuses or incentives paid to executives if the pay was based on false earnings reports.