Grassley Urges State AGs to Investigate Legality of Executive Pay
Sen. Charles Grassley, it seems, has given up on the Bush administration. Just over a month after the Iowa Republican urged the Treasury Dept. to rein in
Jul 31, 2020308.5K Shares4.8M Views
Sen. Charles Grassley, it seems, has given up on the Bush administration.
Just over a month after the Iowa Republican urged the Treasury Dept. to rein in executive pay for companies benefiting from the $700 billion Wall Street bailout, he is now taking his plea to the states.
In a Nov. 19 letterto the 50 state attorneys general, Grassley says that state laws might be applicable in preventing companies from using bailout funds to enrich executives. The senator points to recent efforts in New York to investigate whether American International Group (AIG) violated the state’s “fraudulent conveyance” laws when the company dished out bonuses and other perks to its executives. From the letter:
“„I encourage you … to consider the appropriateness of inquiring into whether financial institutions located within your State have violated (or would violate) State law by making certain executive compensation payments to executives and top management. Financial institutions that are on the verge of collapse should be tightening their belts, like most families have to do, and should not be rewarding executives with taxpayer funds, or any funds for that matter.
Of course, the better way to have ensured the funding wasn’t abused would have been to write these restrictions into the bailout law. Because, as experts have pointed out, it really did nothing to limit executive pay.
Paolo Reyna
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Paolo Reyna is a writer and storyteller with a wide range of interests. He graduated from New York University with a Bachelor of Arts in Journalism and Media Studies.
Paolo enjoys writing about celebrity culture, gaming, visual arts, and events. He has a keen eye for trends in popular culture and an enthusiasm for exploring new ideas. Paolo's writing aims to inform and entertain while providing fresh perspectives on the topics that interest him most.
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