Pelosi/Frank Call for Crackdown on Bailout Firms Awarding Executive Bonuses

Yesterday, House Speaker Nancy Pelosi and Financial Services Committee Chairman Barney Frank wrote to Treasury Secretary Geithner expressing concerns about recent reports that financial firms receiving federal bailout dollars are set to award non-perfomance-based bonsues. The House leaders said they want the newly-installed executive compensation czar Kenneth Feinberg to ensure that pay packages do not "play Russian roulette with the American taxpayer." The letter, which may be found at http://speaker.house.gov/newsroom/pressreleases?id=1320, goes on to say "This dangerous imbalance between rewarding risk and forgiving mistakes is what Congress and the American people are determined to bring to an end. Guaranteed bonuses clearly violate the basic principles of accountability and taxpayer protections set forth by Congress in the [Troubled Assets Relief Program] legislation and reaffirmed by the House of Representatives in the Corporate and Financial Institutions Compensation Fairness Act."