After Treasury Secretary Tim Geithner announced yesterday that the government, the Federal Reserve, and the private sectors would spend around $2 trillion to bailout the troubling financial institutions, US bank CEOs appeared in front of the House Financial Services Committee in an attempt to repair their tarnished reputation. The banks are accused of using the money to cushion their balance sheets or buy up rivals. They are also accused of rewarding themselves with exceptional amount of bonus and corporate retreats to swanky hotels in Las Vegas and other resorts.
In response to questions regarding his previous plan to treat his bank to a new private jet, Citigroup CEO Vikram Pandit said: "We did not adjust quickly enough ... and I take personal responsibility for this mistake." He now pledged that he'll take a salary of one dollar a year with no bonus, until Citigroup is back in profit.
After the hearing, these US bank CEOs will be facing a much bigger "challenge" in terms of what would be "the best uses" of the $2 trillion bailout money for the financial institutions.
(Click to see the full sized editorial cartoon!)
No comments:
Post a Comment