Press Release – Economic recovery plan provision banning bonuses for TARP recipients may also apply to deferred bonuses
Tuesday, March 3, 2009
WASHINGTON – In order to ensure that taxpayer money is not being used to pay Wall Street bonuses, U.S. Senator Robert Menendez (D-NJ), a member of the Banking Committee, today urged the Obama administration to examine recent reports of bank executive bonus deferrals and other creatively-titled reward payments. In his letter to Treasury Secretary Timothy Geithner, Senator Menendez is specifically interested in determining if these bonuses are legal – the economic recovery package included language prohibiting bonuses, which seemingly also prohibits deferred bonuses and other similar payments.
In his letter, Senator Menendez wrote: “The intent of Congress on behalf of the American people was to use TARP funds to free up lending, prevent foreclosures, and stimulate the economy. If used correctly, they will help students pay for college, families get auto loans, homeowners modify mortgages, and small businesses stay open and keep their employees on the payroll. On the other hand, if the money is used for the personal comfort and financial well-being of executives, then this rescue package will be transformed into merely a give-away to banks, to the detriment of taxpayers.”