According to research done by reporters at the UK newspaper The Guardian, approximately 10 percent of the financial bailout voted by Congress this month, or $70 billion, will be spent on pay and bonuses for failed executives. Armed with this information, U.S. Rep. Dennis Kucinich has called for a federal probe.
In a statement made to the progressive Web site The Raw Story, Kucinich, an Ohio Democrat, said:
…When Congress placed restrictions on excessive executive pay, it had no intention of permitting business as usual with respect to bonus structures. … It would add insult to injury to ask taxpayers not only to bailout a firm, but to pay for bonuses as well. The Guardian’s report necessitates an immediate inquiry. …
And Kucinich isn’t the only person finding that the bailout in practice isn’t exactly what was promised.
As was noted today on billionaire Mark Cuban’s newly launched bailout monitoring site, Bailout Sleuth, despite the Treasury’s promise of transparency, officials are already withholding information as to how much firms are receiving and for what purpose specifically they’re receiving it.
It would seem that, despite the efforts of many to guard against secrecy and the payout of executive bonuses, that both are already happening.