Between Cuomo and Waxman, Wall Street is in for some long days.
New York Attorney General Andrew Cuomo is demanding information about executive compensation and bonuses at nine banks that have received federal funds under TARP, the U.S. Treasury's Troubled Asset Relief Program.This is an excellent start. NY and Washington also need to keep digging on the company-wide bonus money but bringing the CEO pay in line should help open up that discussion.
In a letter to each institution's Board of Directors, Cuomo warns the bonuses could violate New York's state fraudulent conveyance law.
"Obviously," he writes, "we will have grave concerns if your expected bonus pool has increased in any way as a result of your receipt or expected receipt of taxpayer funds from TARP."
In the letter, Cuomo demands information on how this year's bonus pools were calculated, as well as details on each bank's 2006 and 2007 bonus payments.
