Feds May Curb Pay at Rescued Financial Firms
Administration hopes move will bolster flagging bailout support
By Jim O'Neill,  Newser User
Posted Feb 2, 2009 8:38 AM CST
President Barack Obama and Treasury Secretary Tim Geithner speak with reporters as they meet in the Oval Office on Thursday.   (AP Photo)
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(Newser) – Seeking to curry public favor, the Obama administration is weighing pay cuts for executives at financial institutions that receive government aid, the Wall Street Journal reports. The move would apply to firms receiving “exceptional” help—a term not clearly defined but seemingly along the lines of that given to AIG, Citigroup, and Detroit automakers—and would restrict executive bonuses and severance packages.

Wall Street also expects the administration to ask Congress for more money than the $350 billion second half of the original $700 billion Troubled Asset Relief Program, as economists agree more is needed. The feds also may spin off the TARP program from Treasury—another move officials think could yield a public-relations boost.