Posted By thestatedtruth.com on December 4, 2009

Dec. 4 (Bloomberg) — Treasury Secretary Timothy Geithner criticized the record bonuses expected to be paid by big banks this year and refuted claims by Goldman Sachs Group Inc. that it would have survived without government aid.

Taking aim at what he called an era of irresponsibly high bonuses, Geithner said all banks — even those that have repaid government aid — need to restrain the amount they pay their leaders and tie compensation to long-term goals.

“We want to see fundamental constraints on how senior executives are paid at these institutions, Geithner said in an interview today for Bloomberg Television’s Political Capital With Al Hunt, that will air this weekend. It is very important that we change the way these executives are paid, the form of compensation, this year.

The Treasury chief also disputed claims made by Goldman Chief Executive Officer Lloyd Blankfein that his firm would have survived last year’s financial crisis without assistance from the federal government.

“The entire U.S. financial system and all the major firms in the country, and even small banks across the country, were at that moment at the middle of a classic run, a classic bank run, Geithner said.

Of the big banks, none of them would have survived a situation in which we had let that fire try to burn itself out, he added.

Last Updated: December 4, 2009 15:05 EST

Categories: Commentary, Economy, Finance, National News, Wall Street
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