In light of recent reports that companies have paid billions of dollars in bonuses over the last year despite the weakening economy and often huge losses by their firms, Connecticut Senator Chris Dodd today called for the Treasury Department to prohibit bonuses from being paid to executives by institutions that receive government support under the Troubled Asset Relief Program (TARP) and to recoup any bonuses improperly paid by institutions that have received TARP funds.

“If you are receiving funds through TARP and at the same time plan to pay out lucrative bonuses, then I'm going to bring you before the Committee and ask why you think you have the right to be giving those kinds of benefits to executives in the midst of this type of crisis,” said Dodd.  “And if bonuses were improperly paid, directly or indirectly, I'm going to look at every possible legal means to get that money back.”

Dodd, who chairs the Senate Banking Committee, also said that he plans to continue his aggressive oversight of the program by holding two hearings in the coming weeks.  On February 5th, the Committee will hear from representatives of organizations charged with overseeing TARP: the Government Accountability Office, the Special Inspector General, and the Congressional Oversight Panel.  On February 10th, Treasury Secretary Timothy Geithner is expected to come before the committee to explain his plans for overhauling the TARP, spending the next $350 billion, and addressing the immediate crisis.

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