TARP-Funded Banks Kept Awarding Bonuses
Firms paid more than they made: Cuomo
By Nick McMaster,  Newser Staff
Posted Jul 30, 2009 12:52 PM CDT
In this Feb. 11, 2009 file photo, NY Attorney General Andrew Cuomo announces the the arrest of twelve individuals and the shutting down of a Bronx-based criminal enterprise in a vehicle theft ring.   (AP Photo/Louis Lanzano, File)
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(Newser) – The financial crisis and government bailouts did little to change Wall Street’s executive compensation habits, New York's attorney general says. All nine banks given assistance by TARP paid out bonuses in 2008—well before any paid back government loans, according to a survey ordered by Andrew Cuomo. Goldman Sachs, Morgan Stanley, and JPMorgan Chase actually paid more in bonuses than the firms made for the year, the Wall Street Journal reports.

The report, "No Rhyme or Reason: The ‘Heads I Win, Tails You Lose’ Bank Bonus Culture," says Goldman, for example, paid $4.8 billion in bonuses in 2008 but earned only $2.3 billion. The firm received $10 billion in TARP funds. Citigroup's yearly losses topped $27 billion, but the bank nonetheless paid out $5.3 billion in bonuses, greased by $45 billion in bailout money.