Treasury freezes pay for CEOs at Ally Financial, GM, AIG

[dixiegrrrrl]

WASHINGTON (Reuters) - The Treasury Department said on Friday that overall compensation for the chief executives of the final three firms that got "exceptional" bailout assistance during the financial crisis has been frozen for the second year in a row.

The ruling applies to the chief executives of AIG, General Motors and Ally Financial, each of which received big taxpayer-financed bailouts that they have not yet fully repaid.

The government pumped $68 billion into AIG from the Troubled Asset Relief Program and invested $50 billion in GM and $17 billion in Ally Financial to save them from collapse during the 2007-2009 crisis.

The Treasury also said total direct compensation during 2012 for 69 other senior executives at the three firms was being cut by 10 percent from 2011 levels.

http://tinyurl.com/75spcve

[mbperrin]

1. How will they survive on just ten million a year!!??

I guess anything is better than what we were doing before.

From the link:

The top executive at AIG will receive total direct compensation, which includes cash, stock and future stock options worth $10.5 million, while Ally Financial's leader will get $9.5 million and GM's chief executive $9 million, according to documents distributed by the Treasury.

[dixiegrrrrl]

2. I dunno, it is all soooo sad. Maybe we can hold a car wash for them??

[Fuddnik]

3. I think Ally is still up to the same old shit.

Last year was watching TV late, and saw a Ditech ad with a nice, low (I think it was about 3.9%) mortgage rate. So just for the hell of it, I filled out their online application.

Now, I've got a first and a second mortgage on my house. Been here 9 years, have never been late (always early) on my payments. And I have sterling credit. But, the house is severely underwater. There's no way in hell that a sane bank would, or should refinance this place. And I wasn't going to pay down any of the principal. And I didn't lie about the new appraised value either.

The next day, it was approved and I received the loan package via FedEx, to sign and overnight it back. But, the kicker was about $9,000 in closing fees that would be rolled into the new mortgage.

Ten minutes later those papers were taking a trip through my shredder.

[dixiegrrrrl]

4. Which is what the HAMP program was about, too.

Banks got paid "by the government" ( read: OUR tax money) for each loan
plus they got the inflated closing fees
plus
they got to start the interest charges on a new loan, off the top.
Plus, the folks who needed HAMP were still a high foreclosure risk, given the economy.