US Treasury: Just say “NO” to Citigroup bonus requests

US Treasury: Just say “NO” to Citigroup bonus requests

Citigroup has requested permission from the US Treasury to pay bonuses to certain employees that may feel demoralized by the current economic situation and that may defect to other banks due to the executive pay limits. They want to pay these employees to retain them, just as AIG stated it wanted to pay out the $165 million in retention bonuses. This is the same “ol’ tired” argument that we keep hearing about executive bonuses when we have families that are losing their homes, unemployment at a record high, and imminent layoffs coming from the Auto Industry. Again, it needs to be stressed that these organizations received Federal Bailout monies because they indicated they were unable to survive financially without the funding. Yet, less than a year later they are requesting to compensate employees above and beyond their salaries. To these employees the US Taxpayers say “You are lucky to have a job and if you are unhappy that you are not receiving a bonus, then join the 6 million on the unemployment rolls”. There should be no more bonuses paid to executives or employees regardless if the company has paid back the Federal Bailout monies or not. The problem with the executive bonuses is that is it “funneled” back down on the backs of the US Taxpayers in the form of higher interest rates and fees. It is in the form of foreclosures and mortgages that are not worth the paper they were printed on. The banks and other companies that are seeking to pay executive bonuses are not concerned with the current economic condition. Most of the employees that would be receiving the bonuses already received enormous salaries that allow them to live at a means that the ordinary US Taxpayer could only “dream” about. The bonuses that the banks are paying out could be used to employ more workers and to alleviate some of the 6 million on the unemployment rolls. It could be used to sponsor programs within the communities that the banks serves or as donations to schools and other organizations that are experiencing financial crisis as a result of the economic crisis caused by these very entities. So to the US Treasury, it is your civic duty to the US Taxpayer to “Just say NO to any bonuses” requested by any banks or other organizations to be paid to the executives as retention bonuses. It needs to be stressed that if the employees feel demoralized then they need only look at the 6 million workers that are on the unemployment rolls and then they will truly understand that they are “lucky” to be employed.

WSJ: Citi asks Treasury if it can pay bonuses:
http://www.seattlepi.com/business/1310ap_us_citigroup_bonuses.html