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October 7, 2008 1:13:40 PM CDT

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Subprime Lender CEOs Defend Exec Pay

Posted Mar 7, 08 3:50 PM CST in Business 

(Newser) – Banking executives who took home huge paychecks even as the subprime mortgage crisis battered their companies appeared before Congress today to defend their actions. Democrats on the House Oversight Committee grilled them about their enormous pay packages as Republicans apologized to them and questioned the premise of the hearing, the New York Times reports.

Stanley O’Neal of Merrill Lynch and Charles Prince of Citgroup—both of whom lost their jobs and received 8-figure severance packages—and Countrywide CEO Angelo Mozilo, who has made over $400 million in his current post, argued that reports of their compensation were overblown and that they earned their salaries, reports the Wall Street Journal. "As our company did well, I did well," Mozilo testified.

Sources New York Times, Wall Street Journal

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    House Hits High Bonuses at Strapped Companies A House committee wants to know why the CEOs of three companies mired in the subprime crisis collected massive bonuses as their firms bled billions, AP reports. The targets include Merrill Lynch, Citigroup, and Countrywide, all of which posted stunning losses last year. Countrywide CEO Angelo Mozilo and the former CEOS of Merrill and Citigroup, Stanley O'Neal and Charles Prince, will be on the hot seat. O'Neal and Prince were fired, but pocketed hefty payouts on the way out. More »

Financial bosses raise their right hands as they are sworn in during a House Oversight and Government Reform hearing on Capitol Hill in Washington, March 7, 2008, in Washington. The committee is examining...   (Associated Press)
Angelo Mozilo, founder and former CEO, Countrywide Financial Corporation, second from right, testifies before the House as, from left, former Chairman and CEO of Citigroup Charles Prince, and former Chairman...   (Associated Press)
E. Stanley O'Neal, former Chairman and CEO of Merrill Lynch, testifies at the House Oversight and Government Reform Committee hearing on Capitol Hill in Washington, March 7, 2008 in Washington. The committee...   (Associated Press)
Angelo Mozilo, founder and former CEO of Countrywide Financial Corporation, center, is sworn in at the House Oversight and Government Reform Committee hearing on Capitol Hill in Washington, March 7, 2008,...   (Associated Press)
Citigroup Chairman and CEO Charles Prince speaks during an unveiling ceremony for the group's new logo at Citibank Korea head office in Seoul in this March 30, 2007 file photo. (AP Photo/Ahn Young-joon,...   (Associated Press)
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Congress  • subprime crisis  • Citigroup  • Merrill Lynch  • Bank of America  • Countrywide  • executive compensation  • financial institutions  • House Committee on Oversight and Government Reform  • bonuses  • Charles Prince  • Stanley O'Neal  • Angelo Mozilo


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