The image of Detroit's Big Three automakers arriving in Washington in corporate jets to ask for a government financial bailout helped doom the rescue package to failure in the U.S. Senate. It conveyed the message that the companies' leaders were out of touch with economic realities, and unwilling to make personal sacrifices to save money for their businesses. And it provided lawmakers a convenient place to direct their ire.
It will be interesting to see how similar news affects lawmakers' feelings about the second half of the $700 billion bailout of financial institutions.
The Associated Press this weekend reported that six financial firms that received billions in bailout dollars still own and operate fleets of jets to carry executives to company events and sometimes personal trips.
Even worse, the 116 banks that have received taxpayer dollars from the bailout so far have given their top tier of executives nearly $1.6 billion in salaries, bonuses and other benefits in 2007, according to an AP analysis. That amount would cover the bailout money given to 53 of the banks that have shared the $188 billion Washington has doled out so far, the AP reports.
But the worst news the AP has to report is that the nation's largest banks can't - or in some cases simply won't - say exactly how they're spending the bailout money. The AP contacted 21 banks that received at least $1 billion, and received no specific answers about how much money is being spent and how.
If corporate management actions angered lawmakers during the auto bailout discussions, and they should have, these revelations should be cause for much caution before committing another $350 billion to financial institutions.
If banks and other institutions aren't willing to curtail executive perks, or account for how public money is being spent, they shouldn't be given our tax dollars.
It will be interesting to see how similar news affects lawmakers' feelings about the second half of the $700 billion bailout of financial institutions.
The Associated Press this weekend reported that six financial firms that received billions in bailout dollars still own and operate fleets of jets to carry executives to company events and sometimes personal trips.
Even worse, the 116 banks that have received taxpayer dollars from the bailout so far have given their top tier of executives nearly $1.6 billion in salaries, bonuses and other benefits in 2007, according to an AP analysis. That amount would cover the bailout money given to 53 of the banks that have shared the $188 billion Washington has doled out so far, the AP reports.
But the worst news the AP has to report is that the nation's largest banks can't - or in some cases simply won't - say exactly how they're spending the bailout money. The AP contacted 21 banks that received at least $1 billion, and received no specific answers about how much money is being spent and how.
If corporate management actions angered lawmakers during the auto bailout discussions, and they should have, these revelations should be cause for much caution before committing another $350 billion to financial institutions.
If banks and other institutions aren't willing to curtail executive perks, or account for how public money is being spent, they shouldn't be given our tax dollars.
