Banking panel chairman say using bailout funds for bonuses against law

[DogPoundPup]

Source: Newsday

WASHINGTON (AP) The chairman of the House Financial Service Committee accused financial institutions on Friday of "distorting" the government's $700 billion economic bailout plan by using funds for bonuses, dividends and acquisitions.

Rep. Barney Frank, D-Mass., said such uses of the funds are a "violation of the terms of the act."

Frank joins a growing chorus of lawmakers on Capitol Hill who are criticizing the Bush administration over management of the bailout plan.

Nine banks have received a $125 billion stock investment from the Treasury Department. The law contains some relatively weak limits on compensation, but does not prohibit recipients of Treasury investments from paying dividends to investors, making acquisitions or awarding bonuses.

Read more: http://www.newsday.com/news/politics/wire/sns-ap-meltdo...

[amdezurik]

1. to anyone with a soul that would be a big DUUUUUUH

obviously we now see what is really wrong with the banks...just a horde of soul-less thieving trolls.

[Turbineguy]

2. They are not using the money for bonuses

they are handing out money to compensate for not getting a bonus.

[Canuckistanian]

3. Well then, let's see some indictments!

Now who can indict these people - the SEC or the DOJ?

Oh, never mind.

[natrat]

4. wait , didnt all these whore politicians mentioned vote for the bill which did not prohibit this?

[robinlynne]

5. They sure did. Against the will of the entire Ameican population.

[Zhade]

6. Um, we who were right about the bailout warned of this.

Shame we weren't listened to, AGAIN.

[gratuitous]

7. Blowing off a subpoena is against the law, too

So I'm sure the executives pocketing those fat bonuses are just quaking in their boots over the prospect of doing something against the law. Oooh, scary!