Wall Street bailout

Top Executives at Bailed-Out Firms Have Pay Cut

Nearly 70 top executives at three companies bailed out by the taxpayers during the 2008 financial crisis -- AIG, Ally Financial and GM -- were ordered to take pay 10% cuts by the federal government, and the CEOs had their pay frozen at 2011 levels.

Bankers Expect a 7% Drop in Bonuses

Bankers worldwide are expecting smaller bonuses this year. Still, they will be hard pressed to find much sympathy as their base salaries were boosted -- in some cases doubled -- this year to compensate for the lower year-end bonuses.

Goldman Sachs to Pay Out $111.3 Million of Stock to Executives

Goldman Sachs Group%u2019s (GS) top executives will receive about $111.3 million worth of stock next month in delayed compensation for their work in 2009 and 2007. CEO Lloyd Blankfein will receive about $24.3 million in January, Bloomberg News reported. Gary D. Cohn, president of Goldman Sachs, will get about $24 million.

The Hidden Cost of Big Wall Street Bonuses to Society

Though most Americans wish that Congress would rein in excessive pay on Wall Street, that won't happen while the huge campaign contributions keep flowing. And the financial industry's big money shell game drains away something more precious from our society than money -- it siphons off talent.

Was Washington Right to Bail Out GM and Wall Street?

Historians will look back on Washington's bailout of GM and Wall Street as the right move. That's because it's now clear that the costs of doing nothing would have been far higher, and it turns out that taxpayers may suffer only limited losses on this economic Hail Mary pass.

Investment Banks Exploit Volcker Rule Loophole

Investment banks are working around new regulations restricting them from putting their own capital into short-term investments: The Wall Street institutions are sidestepping the Volcker Rule by making direct purchases of securities, companies and properties, which are considered longer-term investments.

Buffett Will Bank $3.5 Billion for Saving Goldman

Berkshire Hathaway CEO Warren Buffett extracted onerous terms from Goldman Sachs when he saved it from a potential meltdown. Two years later, Wall Street is healthy again, Goldman wants Buffett out of its hair, and he's looking at a $3.5 billion profit on that $5 billion lifeline.

2010 U.S. Budget Deficit Comes in Below Expectations

Investors received another sign Friday that the U.S. economy is continuing to heal: The 2010 U.S. budget deficit came in at a smaller-than-predicted $1.29 trillion. Though it was still the second-highest deficit on record, the numbers reflect growth in tax revenues, and thus in the economy.

New Citigroup Hire Lands $30 Million Pay Deal

Citigroup%u2019s (C) newest energy banker Stephen Trauber could take home as much as $30 million over three years as part of his juicy new pay package with the bank. Trauber, whom Citigroup poached from Swiss bank UBS (UBS), landed himself the deal just months after pay czar Kenneth Feinberg ended his oversight of Citigroup%u2019s pay practices, The Wall Street Journal said. The U.S. taxpayer still owned 17.5% of Citigroup as of July.

Is this the Era of an Economically Irrelevant America?

There are people around the world rubbing their hands with glee at America's supposed collapse, pundits who say this nation is so bankrupt that it has become irrelevant. But author, venture capitalist and DailyFinance columnist Peter Cohan says don't write America's obituary just yet.

Pay Czar Feinberg to Ask for Stronger Clawback Provisions

Wall Street "pay czar" Kenneth Feinberg will ask several financial firms to strengthen so-called clawback provisions, but will not force them to recover bonuses paid at the height of the financial crisis, CNBC reported. Clawback provisions allow companies to reclaim compensation given to employees if, for instance, the employee is found to have caused significant losses for the firm.

Senate Passes Historic Financial Reform Bill

Prodded by national anger at Wall Street, the Senate on Thursday passed the most far-reaching restraints on big banks since the Great Depression. In its broad sweep, the massive bill would touch Wall Street CEOs and first-time homebuyers, high-flying traders and small town lenders.

GOP Stops Senate Financial Reform Bill From Advancing

Republicans have stopped a bill designed to reform financial services regulation from moving forward in the Senate. Proponents of a bill that seeks to reduce risk in the banking system and increase consumer protections will now have to draft a new bill that can garner 60 votes needed.

President Obama Gets a B for Financial Reform

What's the best way to evaluate the financial reform legislation that Obama pressed vigorously for on Thursday in New York City? Overall, it's probably the best outcome that's politically possible. It helps, but it doesn't cure what's really wrong on Wall Street.

How to Prevent Another Financial Crisis? Make Wall Street Pay

What's needed is an approach that shifts incentives so that bankers can effectively regulate themselves. They should get paid based on a share of their customers' long-term investment returns, and they wouldn't get bonuses if their banks violated capital requirements.

Why Senator Dodd Should Fire His Chief Counsel

Senate Banking Committee, which Dodd chairs, retains a general counsel, Amy Friend, who apparently tried to profit off the implosion of Wells Fargo, Morgan Stanley, AIG and other financial institutions in the 2008 collapse. The counsel's actions were legal -- but despicable.