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2.7%  Q1 GDP    4.57%  avg. 30-year mortgage     9.5%  Unemployment

Chicago Considers Restricting Executive Pay for Banks Taking Bailout Money

CORRECTION: An earlier version of this post reported that Chicago had passed a resolution to cap executive compensation for banks receiving federal money through the federal bailout. The resolution has been proposed, but it has not been passed by the city council.

Chicago is considering a resolution that would restrict how much banks can pay their executives if they've received federal money under the Troubled Asset Relief Program. According to a copy of the resolution obtained by the Washington Post, any bank that receives funds through the federal bailout would have to pay an executive less than $400,000 a year, including bonuses.

If the bank -- or any of its affiliates -- chooses to pay executives more than $400,000 a year, it would not be allowed to operate within Chicago's city limits.

As far as we know, Chicago is the only city to consider this kind of measure so far.

--Kim Hart

By Frank Ahrens  |  October 17, 2008; 5:57 PM ET
Categories:  The Ticker  
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: Despite Sell-Off, Still a Decent Week
Next: Oct. 17, 2008

Comments

This sounds a bit extreme.....but it does do the job that the Federal Government promised and didn't come close to delivering. Have this type of bill sweep through every major city and that will keep'em in line.

Of course the shareholders would have to force by vote to take the company in that direction or throw out the current board. Not likely.

Posted by: Mike | October 17, 2008 6:19 PM | Report abuse

Then: "The King of All Media can book another $83 million to his net worth."
Now: We lost money. Give us your money and your kids money and their kids money.

You lost. Tough luck, it's rough justice. It's going to just keep getting rougher. See the King for money.

Posted by: Anonymous | October 17, 2008 8:52 PM | Report abuse

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