Category Archives: Treasury Secretary Tim Geithner

AIG BONUSES "ARE AN INSULT TO FAMILIES TRYING TO SURVIVE THE ECONOMIC CRISIS,"

U.S. Senator Robert Menendez (D-NJ), a member of the Banking Committee released the following statement on bonuses paid out by AIG, the insurance giant that also has benefited from a government rescue plan:

“These bonuses are an insult to families who are trying to survive the economic crisis by saving every penny and changing their way of life. They have every right to be furious that AIG is taking their tax dollars while carrying on with what can only be described as business as usual – particularly when business as usual helped put us in this mess.

“President Obama is right to have his administration search every legal means available to try to block these bonuses, and I will help push similar efforts in the Senate. The question must be asked: If unions can be expected to renegotiate contracts to help save companies or industries, then why can’t companies do the same with their executives during this crisis?

“We have to make sure that Wall Street is using taxpayer money in a responsible manner. Perhaps equally as important, we have to make sure that some on Wall Street don’t further erode the confidence of the American people by failing to recognize the need for shared sacrifice. There is a fundamental and troubling disconnect between the realities that families across this country are living through and how some on Wall Street are acting like there is no crisis.”

Senator Menendez also appeared yesterday afternoon on the MSNBC program “1600 Pennsylvania Avenue” with host David Shuster to discuss his feelings on the AIG bonuses.

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Filed under 1600 Pennsylvania Ave, AIG, corporate bonuses, David Shuster, MSNBC, President Obama, Senate banking committee, Senator Bob Menendez, TARP, Treasury Secretary Tim Geithner

SEN. MENENDEZ URGES OBAMA ADMINISTRATION TO INVESTIGATE DEFERRED BONUSES BY BANKS RECEIVING TAXPAYER MONEY

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.”

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Filed under deferred bonuses, Economic Assistance and Recovery Plan, press release, TARP, Treasury Secretary Tim Geithner, US. Sen. Robert Menendez, Wall St. bonuses