The Treasury Department has posted the contracts it has with private companies advising on the bailout, perhaps in an effort to increase transparency during this dense and difficult period which is leaving many taxpayers feeling screwed. Too bad the Treasury Department decided to black out the compensation for these firms, so taxpayers have no idea what they’re paying for.
Bailout Sleuth has the details on the blacked out sections:
The Treasury Department told other news organisations that the information on the bank’s compensation will be released when other details of the program, such the hiring of subcontractors, are finalised.
Kevin Heine, a spokesman for Bank of New York Mellon, said the bank does not expect the information to be kept secret.
How much are these advisors supposed to be earning? Again, as per Bailout Sleuth:
The government’s three-year contract with Bank of New York Mellon does not show how much the company will be paid to act as the master custodian of the bailout fund. The contract says that the bank will be paid a monthly fee, but that fee is blacked out.
The Treasury Department’s six-month deal with Simpson Thacher for legal advice on equity purchases in U.S. banks has a value of $300,000. But the contract posted on the Treasury Department’s web site Thursday did not show the hourly rates the government will be paying the firm. The figures for all the employee classifications, from partner to legal assistant, were redacted.
The Treasury Department’s third contract, with EnnisKnupp and Associates Inc., had no redactions. That agreement runs for a year and calls for $2,495,190 in compensation — $2.4 million for labour and $95,190 for travel expenses.
Via: Huffington Post
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