Don't Spend Bonus Bucks Yet, Warns 'Clawback' Czar

By Mat Probasco,  Newser Staff
Posted Aug 17, 2009 5:13 AM CDT
Kenneth R. Feinberg speaks at his office in Washington.   (AP Photo/Charles Dharapak, File)

(Newser) – Just because top banking executives took home hefty paychecks in recent months doesn't mean they'll get to keep the money, reports Reuters. White House pay czar Kenneth Feinberg declared he has clear authority to "claw back" egregious bonuses already paid out by any bank that received federal TARP money.

Potential targets include Goldman Sachs, which posted massive profits last quarter after repaying $10 billion in bailout money, and Citigroup, which will reportedly pay an energy trader $100 million this year. Citi, AIG, Bank of America, Chrysler Financial, Chrysler Group, General Motors, and GMAC were required to submit proposals to Feinberg for their top 25 employees by Friday. (Read more Kenneth Feinberg stories.)