Wells Fargo & Co. (NYSE:WFC) and Bank of America Corp. (NYSE: BAC) are stable today, but the danger remains

Wells Fargo & Co. and Bank of America Corp. have been criticized

In brief: New tests will wait for the Wells Fargo & Co. (NYSE:WFC) and Bank of America Corp. (NYSE: BAC).

Wells Fargo & Co. (Pre-market: 27.50 +0.08 (0.29%)) and Bank of America Corp. (Pre-market: 13.86 +0.12 (0.87%)) could have some more problems, despite present stability. Wells Fargo & Co. (NYSE:WFC) and Bank of America Corp. are among 17 banks criticized Friday by U.S. pay czar Kenneth Feinberg for collectively paying out $1.6 billion in bonuses and other additional compensation to executives even as the banks received taxpayer assistance.

The payments took place in the five months between September 2008, when the bank bailouts began, and February 2009, when restrictions on executive compensation at government-assisted firms took effect. In his report on crisis assistance to private firms, Feinberg did not specify how much each bank paid, or which executives received the compensation. Some individuals received more than $10 million while their banks received public aid, the report said. The payments were not illegal but were “ill advised” and lacked a clear rationale, Feinberg said. Feinberg said he will not ask the banks to return the payouts. He would be permitted to do so but is not required to. Eleven of the 17 firms have now repaid money received under the Troubled Asset Relief Program. His report said firms should adopt policies that allow directors to reduce or eliminate executive bonuses and other compensation once the board has determined the company was facing a crisis. Feinberg said he has reviewed the proposal with each of the 17 firms, reports Denver BJ.

Ukrainian Globalist
2010-07-26 13:53, Economics.

News on: , , , , , , , , ,

Post a comment