Financial Regulatory Forum

U.S. pay czar emphasizes wide “clawback” power

October 23, 2009

By Karey Wutkowski
WASHINGTON, Oct 23 (Reuters) – U.S. pay czar Kenneth Feinberg emphasized on Friday his ability to claw back pay at any company receiving a taxpayer bailout, but said such an extreme action “will be rare and far between.”

U.S. slashes pay at seven bailed out firms, cuts cash up to 90 percent

October 22, 2009

   WASHINGTON, Oct 22 (Reuters) – The U.S. Treasury’s pay czar on Thursday slashed overall pay by more than half for top earners at seven companies that received massive taxpayer bailouts, and ordered that most of their salaries be paid in the form of long-term company stock. Kenneth Feinberg, charged with approving or renegotiating pay contracts for the 25 highest-paid employees at the seven banks and automakers, said their cash compensation for 2009 would drop by more than 90 percent compared to 2008.

Bank of America’s Ken Lewis to receive no pay for 2009

October 16, 2009

Bank of America CEO Kenneth Lewis pauses as he speaks at the National Urban League Conference in Chicago July 30, 2009. (file photo) REUTERS/John Gress By Joe Rauch

CHARLOTTE, Oct 15 (Reuters) – Bank of America Corp (BAC.N) Chief Executive Kenneth Lewis will receive no pay or benefits for his last year of work at the company.

Bank of America agrees to give U.S. more details on Merrill

October 13, 2009

People walk past a Bank of America branch in New York August 13, 2009. (File Photo) REUTERS/Lucas Jackson (UNITED STATES BUSINESS)

Elinor Comlay and Rachelle Younglai
NEW YORK/WASHINGTON, Oct 13 (Reuters) – Bank of America Corp’s decision to hand over protected information on what it knew about Merrill Lynch before it merged paves the way for the bank to settle a number of federal investigations and start anew after Chief Executive Kenneth Lewis departs.

Bank of America pledges halt on card rate hikes

October 6, 2009

U.S. Senator Christopher Dodd (D-CT) (File Photo) WASHINGTON, Oct 6 (Reuters) – Bank of America said it will not change the terms on consumer credit card accounts ahead of reform legislation slated to go into effect early next year, according to a letter released by a lawmaker on Tuesday.

NEWSMAKER-Bank of America CEO Lewis: Fallen hero

October 1, 2009

Bank of America's Ken Lewis joins TARP recipient financial institution leaders before they testify before House Financial Services Committee on Capitol Hill in Washington, in this  February 11, 2009 file photo. Bank of America Corp shareholders voted to oust Lewis as chairman of the board on April 29, 2009 after months of mounting criticism of his stewardship of the largest U.S. bank. REUTERS/Larry Downing/Files (UNITED STATES BUSINESS POLITICS HEADSHOT IMAGES OF THE DAY)   By Jonathan Stempel
   NEW YORK, Sept 30 (Reuters) – A little over a year ago, Bank of America Corp <BAC.N> Chief Executive Kenneth Lewis was a hero on Wall Street with his audacious purchase — some would say rescue from certain collapse — of Merrill Lynch & Co, following less than two days of talks. (more…)

U.S. “pay czar” Feinberg using formulas, not caps

September 25, 2009

By Steve Eder
NEW YORK (Reuters) – President Barack Obama’s “pay czar” said on Friday he was using formulas and data analysis to determine executive compensation at government-rescued firms, rather than relying on pay caps.

Cuomo subpoenas 5 Bank of America directors

September 17, 2009

New York State Attorney General Andrew Cuomo answers questions during a news conference held on Wall Street in New York October 15, 2008. Cuomo is investigating what he contends is "unwarranted and outrageous" spending by American International Group Inc. even as the struggling insurance giant receives $123 billion of U.S. government funding to stay alive.    REUTERS/Brendan McDermid (UNITED STATES)   By Jonathan Stempel
   NEW YORK, Sept 16 (Reuters) – Ratcheting up pressure on the largest U.S. bank, New York Attorney General Andrew Cuomo has subpoenaed five current or former Bank of America Corp <BAC.N> directors to learn what they knew about Merrill Lynch & Co’s problems as the companies prepared to merge. (more…)

ANALYSIS-SEC has few options, none good, in BofA case

September 16, 2009

A woman walks past the Merrill Lynch logo outside their offices in the City of London March 6, 2009.  Merrill Lynch discovered a trading "irregularity" during a recent investigation of the troubled investment bank's London trading positions, the company said on Friday. The trading issue, which Merrill did not quantify, was the latest black eye for the bank, which agreed to be acquired by Bank of America Corp last Sept. 15, the same morning that Lehman Brothers Holdings Inc went bankrupt. REUTERS/Andrew Winning (BRITAIN)   By Jonathan Stempel
   NEW YORK, Sept 15 (Reuters) – Stung by a federal judge’s rejection of settlement efforts with Bank of America Corp <BAC.N>, the U.S. Securities and Exchange Commission has a few ways to proceed in the case. None is good. (more…)

U.S. rebuffing big banks’ push to exit bailout early

September 15, 2009

By Karey Wutkowski and Steve Eder
WASHINGTON/NEW YORK, Sept 15 (Reuters) – Some of the largest U.S. banks will remain in the government’s financial bailout program for months, as officials do not expect to grant the next wave of exit approvals until near the end of the year, according to a source familiar with the matter. (more…)