Report Outlines Big Bonuses at Rescued Banks

By Tomoeh Murakami Tse
Washington Post Staff Writer
Thursday, July 30, 2009

NEW YORK -- Compensation practices at the nation's largest banks have become "unmoored" from their financial performance, according to a report released Thursday by the New York Attorney General Andrew Cuomo.

"When the banks did well, their employees were paid well," Cuomo said in the report. "When the banks did poorly, their employees were paid well. And when the banks did very poorly, they were bailed out by taxpayers and their employees were still paid well."

The 22-page report, "No Rhyme or Reason: The 'Heads I Win, Tails You Lose' Bank Bonus Culture," looked at 2008 bonuses and earnings at the nine large banks that were the first to receive government funds last year under the Troubled Assets Relief Program.

Two firms, Citigroup and Merrill Lynch, suffered losses of more than $27 billion each but paid out $5.3 billion and $3.6 billion in bonuses, respectively, the report noted. Together, they have received TARP funds totaling $55 billion.

(More here.)