We were pleased to learn this week that the Treasury Department and Federal Reserve are taking action to prevent greed and wasteful spending among corporations.
The government made unprecedented cuts in executive pay Thursday for companies that benefited from bailouts. The Treasury Department ordered seven companies who have not yet reimbursed the government to cut executives’ total compensation in half, beginning next month. The seven bailed-out companies are Bank of America Corp., American International Group Inc., Citigroup Inc., General Motors, GMAC, Chrysler and Chrysler Financial.
The Federal Reserve also proposed to oversee compensation to ensure the banks aren’t taking reckless risks.
We were — and still are — in favor of the bailouts and are glad that the companies have been able to stay on their feet, as they are major players in our financial system and our economy. But bailed-out companies showering their executives with lavish pay, bonuses and perks are simply thumbing their noses at those whose tax dollars are keeping these companies afloat.
We applaud the government for its decisive action in looking out for the interest of the American taxpayer and are hopeful that it continues to be diligent in its oversight efforts.
Jacob W. Brower, for The Morning Sun
