Reid Pressing Treasury to 'Establish Guidelines' on Executive Pay

By Susan Jones | March 19, 2009 | 10:04 AM EDT

( – Senate Majority Leader Harry Reid (D-Nev.) says Congress is taking "several affirmative steps" to make sure employees at bailed-out companies are not rewarded with big bonuses.
"First, we are sending AIG a letter asking them to renegotiate the contracts that include these appalling bonuses. Second, if they don’t, Chairman [Max] Baucus will propose legislation to give this money back to the taxpayers by subjecting the bonuses to severe tax penalties. Third, as part of the Economic Recovery Act, we asked the Treasury Department to establish guidelines regarding executive pay and luxuries. Last week we sent Treasury a letter urging it to quickly finish these guidelines; today we reiterate that request. Fourth, we will work with President Obama and the Banking Committee to complete a Wall Street Accountability bill as soon as possible."
According to Reid, who was among the 74 senators who voted for the financial bailout bill (TARP), "AIG's attitude represents everything that is wrong with Wall Street."
The message on Reid's Web site does not say anything about Congress's failure to make sure taxpayer protections were included in the $700-billion TARP bill, which was passed in a rush last October.

Also See:
Blame Game: McConnell Points Accusing Finger at Treasury and AIG (Mar. 19, 2009)

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