Bailed-Out Banks Dole Out Bonuses
Goldman Sachs, CitiGroup, Others Mum on How They Are Using TARP Cash
Bailed-Out Banks Mum on Public Funds
Banks that were rescued with billions of dollars in public funds have, in most cases, refused to provide specifics about how they have used or intend to use the money.
ABC News asked 16 of the banks that have received money from the Treasury Department's $700 billion Trouble Asset Relief Program the same two questions: How has your financial institution used the money, and how much has your financial institution allocated to bonuses and incentives this year?
To read the banks' responses, click here.
"We do not break down the components of compensation; however, most of that number was not bonuses," the Goldman Sachs spokesman said, adding, "TARP money is not being paid to employee compensation. It's been and will continue to be used to facilitate client activity in the capital markets."
But Congress was told the banks needed the money for survival. If they had not survived, would they be paying bonuses?
"What's missing from this report is the exact amount of bonuses that were paid," Reda said. "They're hiding the ball."
Fred Cannon, chief equity strategist with Keefe Bruyette & Woods, an investment bank that specializes exclusively in financial services, said, "It is difficult to say what the TARP funds are directly used for. In terms of compensation, while TARP funds may not directly pay for compensation, the funds do provide additional overall cash to the companies."
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