Bailout bonuses to be looked at by U.S. officials
Government officials have said that U. S. officials will examine executive compensation at 419 firms that received bailout funds during the financial crisis.
The review is required under a 2009 law creating the Treasury Department post of special master for executive compensation at companies receiving funds through the Troubled Assets Relief Program, passed in 2008.
The Wall Street Journal reported on Monday that Kenneth R. Feinberg, the special master, is expected to notify the firms in a letter Tuesday that his office will review compensation for a period of time that includes the 2008 end-of-year bonus season at most big institutions.
The newspaper further said that the list of firms expected to be part of the review includes Goldman Sachs Group Inc., J. P. Morgan Chase & Co. and Morgan Stanley.
The newspaper also noted that the examination is intended to determine whether any compensation paid during the period in question should be returned to the Treasury. It comes at a time of public anger over Wall Street compensation as high unemployment rates persist in the United States.
As the financial sector has regained some of the strength it lost during the 2008 meltdown, financial firms have gotten back to paying large executive bonuses. (With Inputs from Agencies)