Andrew Cuomo vs. Theft

30 Oct

No joke – New York’s Attorney General is looking into whether or not banks are using the receipt of federal bailout funds as part of their yearly bonus calculations.

New York Attorney General Andrew Cuomo is demanding information about executive compensation and bonuses at nine banks that have received federal funds under TARP, the U.S. Treasury’s Troubled Asset Relief Program.

In a letter to each institution’s Board of Directors, Cuomo warns the bonuses could violate New York’s state fraudulent conveyance law.

“Obviously,” he writes, “we will have grave concerns if your expected bonus pool has increased in any way as a result of your receipt or expected receipt of taxpayer funds from TARP.”

In the letter, Cuomo demands information on how this year’s bonus pools were calculated, as well as details on each bank’s 2006 and 2007 bonus payments.

The bailout was very painful and controversial, and the money is to be used for very specific purposes. Bonuses for executives was not among them.

One Response to “Andrew Cuomo vs. Theft”

  1. wcp October 30, 2008 at 11:48 am #

    Unreal.

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