Treasury allowed raises at bailout companies

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Posted: Jan 28, 2013 7:15 PM by Michael Marsh
Updated: Jan 28, 2013 7:15 PM
Source: Associated Press

  Rating: 5.0 (1 vote)

Topics: bailout, AIG, General Motors, Ally Financial, raises, Treasury

The U.S. Treasury Department disregarded its own rules and allowed large pay raises for executives at three companies that got taxpayer-funded bailouts during the great recession. Treasury approved 18 raises for people at AIG, General Motors and Ally Financial. The Special Inspector General for Troubled Asset Relief says 14 of the raises were $100,000 or more. For the CEO of AIG, it was for $1 million. The three companies got nearly $250 billion in bailout money but only AIG has fully repaid its share. The report says in some cases, Treasury failed to link compensation to performance.

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