Ken Feinberg is set to announce today at 10 am that 17 TARP-receiving banks made “ill-advised” payments to execs with taxpayer funds, according to CNBC.
JPMorgan and Goldman Sachs are included in the 17.
This will be a big announcement. especially if Feinberg names the individuals who received the “ill-advised” bonuses. UPDATE: Feinberg will not name the 25 individuals who received the payments, but he hopes to “shame” the banks that paid the “excessive” compensation into returning the grand total, $1.6 billion, that he deemed excessive.
It will be somewhat embarrassing for the firms that made those payouts, but to be fair, they were obliged to – as long as they are standing, the banks’ compensation contracts with employees should be upheld by law. But the conundrum is that these banks, which received TARP funds, would not be standing were it not for taxpayer funds.
There are 25 execs within these 17 banks who Feinberg believes were paid unwisely during the financial crisis.
So get ready for 10 am tomorrow – this could get ugly!