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View Diary: Bailed-out AIG, Ally and GM executives get big raises, courtesy the Treasury Department (35 comments)

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  •  Bailed-Out Companies Pressured TARP Pay Czar.. (3+ / 0-)

    .. To Keep Executive Pay High
    Reuters - 01/24/2012 8:24 am

    WASHINGTON, Jan 24 (Reuters) - Pressure from financial institutions and Treasury officials undermined an effort to limit executive pay at seven companies rescued with taxpayer money, a new government audit showed on Tuesday.
    What exactly constitutes pressure..
    "Special Master Feinberg said the companies pressured him to let the companies pay executives enough to keep them from quitting, and that Treasury officials pressured him to let the companies pay executives enough to keep the companies competitive and on track to repay TARP funds," the report said.
    ..is what I'd like to know
    Given OSM's (office of special manager) overriding goal to get the companies to repay TARP, as in prior years, the companies in 2012 had significant leverage over OSM by proposing and negotiating for excessive pay, warning that if OSM did not provide competitive pay packages, top executives would leave and go elsewhere
    So isn't it time to tell "Galt" to take a hike - How about to prison as the incentive unless they work their asses off to fix what they broke & pay back their gambling debts?

    It seems to me that prison time is the pressure these high rollers would understand

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