TARP Watchdog: Treasury failed to rein in pay at bailed out AIG, GM, Ally Financial

While the Troubled Asset Relief Program — aka the massive federal bailout of companies at the heart of the financial crisis, such as Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs and Morgan Stanley — has largely wound down, a report from the Special Inspector General for TARP is offering Americans one last chance to grind their teeth. According to SIGTARP, the Treasury failed to constrain pay at troubled firms that as of 2012 were still part of TARP. That includes Ally Financial, General Motors and AIG. According to the SIGTARP report, of the 69 executives that fell under TARP pay guidelines in 2012, only one of them received compensation of less than $1 million. More than half received at least $3 million, and 16 of the 69 received more than $5 million. According to SIGTARP, Treasury allowed the companies themselves too much say in setting their own pay, and it also failed to enforce standards.