Washington, DC –Congresswoman Carol Shea-Porter today announced that she has joined withtwenty-two of her colleagues in sending a letter to the CEOs of eight major banks receiving Troubled Asset Relief Program (TARP) funds. The letter urges these CEOs to renounce bonuses for their top executives.
When theEmergency Economic Stabilization Act was being negotiated, last-minute changessought by the Bush Administrationcreated a loophole in the bill allowing executives to continue toreceivelarge bonuses.
“I opposed the Wall Street bailout last October because it allowed Wall Street executives to continue to be rewarded for their failure and did not provide enough regulation to protect American taxpayers,” declared Shea-Porter. “I continue to oppose this misuse of Americans’ money.”
The text of the letter is included below.
As Members of Congress acutely concerned with taxpayer protection, we were shocked to learn that companies currently participating in the Troubled Asset Relief Program (TARP) are able to skirt executive compensation limits included in the Emergency Economic Stabilization Act (EESA) using a loophole inserted into the legislation by the Bush administration late in bill negotiations, as detailed in the 12/15/2008 Washington Post (article attached).
These taxpayer protections are essential to ensuring balance in and the success of the TARP, and we urge you to voluntarily abide by the executive compensation limits contained in the EESA, starting by renouncing bonuses for all your top executives.
The people we represent vehemently object to the use of their taxpayer dollars, directly or indirectly, to pay bonuses to executives at institutions receiving federal bailout money.
We note that Goldman Sachs, the recipient of $10 billion in bailout funds, recently renounced bonuses for its top executives.
We urge you to do the same, voluntarily and immediately.
Reviving our economy will take hard work, cooperation, and shared sacrifice. It would be a very good signal to the American taxpayers that you agree, which you can demonstrate by following the Goldman Sachs example.