Ilya Marritz covers business for WNYC.
NJ Senator Warns Against "Retention Awards"
Monday, March 09, 2009
New York, NY —
A member of the Senate's powerful Banking Committee says he's concerned that banks that got bailout money may be bending the rules to give big bonuses that are illegal under a new law. New Jersey Senator Robert Menendez says some banks are offering "retention awards" instead of bonuses, or promising future bonuses. He says this is furthering the credit crisis.
MENENDEZ: It could be essentially committing taxpayer money to bonuses in the future that keep it from lending to families and businesses today.
The bailout package signed into law last month prohibits cash bonuses to top officers at financial institutions receiving federal aid.