Citi wants to pay bonuses
NEW YORK - Citigroup, which has received $45 billion in federal bailout funds and potentially could have to raise more capital based on "stress test" results, is requesting permission from the Treasury Department to pay out special bonuses to certain workers, The Wall Street Journal said.
Banks that accepted federal bailout funds are subject to greater government scrutiny and limits on how much they pay their top executives. The restrictions are intended to prevent the outrage that ensued after it was disclosed that insurer American International Group had paid out $165 million in bonuses despite having been bailed out with more than $180 billion.
But bank employees are chafing at the restrictions, and companies have said the pay caps make them vulnerable to poaching by competitors. Some smaller banks have quickly repaid bailout funds in order to remove themselves from heightened oversight.
Several of the biggest bailout recipients including JPMorgan Chase, Wells Fargo, Morgan Stanley and Goldman Sachs Group have said they want to repay the government as soon as possible.
