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Treasury Disregarded Own Guidlines, Allowed Executive Raises at GM and AIG

OhNoItsDEVO 13,393 180 January 28, 2013 at 12:35 PM
http://www.huffingtonpost.com/201...68235.html

Quote :
A watchdog says the U.S. Treasury Department disregarded its own guidelines and allowed large pay increases for executives at three firms that had received taxpayer-funded bailouts during the financial crisis.

The Special Inspector General for Troubled Asset Relief Program says Treasury approved 18 raises for executives at American International Group Inc., General Motors Corp. and Ally Financial Inc. Of those requests, 14 were for $100,000 or more. One raise, for the CEO of a division at AIG, was for $1 million.

The three firms received a combined nearly $250 billion from the bailout fund. Only AIG has fully repaid its $182 billion bailout.

The report says Treasury approved raises that exceeded pay limits and in some cases failed to link compensation to performance.

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#16
Quote from ASG View Post :
Instead of saying "not surprising," I'd be curious if the conservatives here would actually express their opinion as to whether these raises/bonuses should have been interfered with.
Shouldn't have bailed them out in the first place. Let them go into normal bankruptcy proceedings.
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If I appear to be ignoring your posts, it's probably because you are on my ignore list.

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#17
Quote from 124nic8 View Post :
That is ancient "news" and has very little to do with Apples' profitability today, which is primarily based on sales of iPads and iPhones. In fact Apple almost went out of business in spite of your example of government "largesse," so the best that can be said is, w/o it, Apple would likely not have survived.
You mean these ipads? [sfgate.com]

Back in June, the Department of Insurance - funded largely through fees and assessments on the insurance industry - handed out iPads costing about $1,000 apiece to 31 senior staffers.





Apparently they don't even know the retail cost of an Ipad.
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#18
Quote from Krazen1211 View Post :
You mean these ipads? [sfgate.com]

Back in June, the Department of Insurance - funded largely through fees and assessments on the insurance industry - handed out iPads costing about $1,000 apiece to 31 senior staffers.





Apparently they don't even know the retail cost of an Ipad.
With accessories and software, an iPad can easily run $1000 retail.

From your cite:

Quote :
A department spokesman told us the devices were part of a pilot program to increase efficiency and enhance the department's "paperless/green initiatives."

Read more: http://www.sfgate.com/bayarea/mat...z2JWT6lyxq
It's entirely possible that $31K expenditure saved taxpayers money. It's certainly a drop in the bucket of Apple's profiatbility. Fail again.
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#19
Quote from Krazen1211 View Post :
You mean these ipads? [sfgate.com]

Back in June, the Department of Insurance - funded largely through fees and assessments on the insurance industry - handed out iPads costing about $1,000 apiece to 31 senior staffers.
Everyone knows having an iPad is a constitutional right. Says Jesse Jackson Jr.
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#20
Quote from Xygonn View Post :
Shouldn't have bailed them out in the first place. Let them go into normal bankruptcy proceedings.
That wasn't the question.
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#21
Quote from ASG View Post :
That wasn't the question.
It sort of was. That is the creeping nature of government intervention.

If I recall correctly the bonus restrictions were added after the bailout was already underway.

If they had received the bailout with notice that there would be restrictions on how they used the bailout money up front, I wouldn't have any problems with the restriction.

As is, I think the government should not have added restrictions to how the money was used. Why should they be able to modify a contract after it is already signed and executed?

It's like telling your neighbor you'll lend him $20 bucks (without asking why but understanding he intends to pay you back), then after lending it to him, giving him a call later that day saying, "You can't use the $20 bucks to buy beer, and since money is fungible, you can't buy any beer until you pay me back. If you do, then I'm going to fine you." Obviously you don't have the power to fine him, but the government does.
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