Ken Feinberg

Key Events In The Coming Busy Week

Now that the World Cup is over, and following last week's global macro reporting slumber (aside for the Portuguese risk flaring episode of course), things pick up quite a bit in the coming week. Here are the key events.

Ken Feinberg To Clawback 2008 Bonus Money On Friday

Fox Biz reports that Ken Feinberg, as one of his last ineffectual actions during his tenure, will announce on Friday the clawback of various bonuses paid during the 2008 year of ubiquitous bail outs. Since every single bank received some form of assistance in 2008, and many still benefit from the ridiculously low rates on the FDIC-backed TLGP debt (which only has 1.5 years before it matures), it is unclear which banks will be the target of this last attempt to recover some taxpayer money out of the TBTF. Also, since these same banks run the country via their Federal Reserve lobby, it is unclear if and to what extent the Goldmans of the world will agree to this action. As Gasparino reports: "In an interview, Feinberg refused to say how much money he’s going to ask for or which banks will be targeted. “I’m aiming for Friday to make an announcement,” he said in an interview. “The banks will be notified shortly.” Feinberg declined to say whether the five remaining banks -- Citigroup, JPMorgan, Goldman Sachs, Morgan Stanley and Bank of America -- would be repaying any of the claw-back money; his mandate covers 418 banks, but people on Wall Street suspect the main focus of his mandate will be the large financial institutions."

madhedgefundtrader's picture

The financial crisis compressed 30 years of change into two, taking us from libertarian Ayn Rand to pay czar Ken Feinberg in one giant leap. The “white collarization” of organized crime has been a secular trend since the sixties. AIG getting 100 cents on the dollar was the greatest scam in history. Maybe a pathological need to be in front of the spotlight? No luck with the infamous black book.

Pay Czar Feinberg Had Input On Blankfein's 9 Million Bonus, No Determination On Thain's CIT Package

A Bloomberg Television interview with Ken Feinberg discloses that the Pay Czar believes the Goldman CEO's compensation is still excessive. "If you look at the 700 people that are under my mandatory jurisdiction I do not believe there is more than one or two in the total of 700 that are making that type of total compensation." Yet Feinberg is happy that Lloyd has received the bulk of his comp in slow-vesting stock. More curiously, Feinberg was in fact consulted when determining Blankfein's bonus package - this is odd as Goldman's has repeated its belief that since it has paid back TARP, but not TALF, it is its own bonus master. Is Goldman so terrified of the Administration's PR onslaught that no matter what it wanted to make sure a bonus announcement wouldn't be followed up by the Teleprompter In Chief immediately firing back with some more fire and brimstone?

AIG General Counsel Who Protested Meager $500K To Have Her Bluff Called, Get Sacked

It appears the only thing worse in this world than a measly $500,000 salary is getting no salary at all. And that's exactly what is about to happen to AIG General Counsel, Anastasia Kelly, who before joining the bankrupt firm, was a GC at such reputable organizations as MCI/WorldCon (sic) and Fannie Mae. To paraphrase the objections against a very prominent Treasury Secretary recently, the question is not whether or not she will leave the job, the question is how she got it in the first place. Kelly, who recently was protesting the $500k salary cap imposed by Pay Despot Ken Feinberg, yet was in Benmosche's black book, will likely be out of the organization, presumably involuntarily, by year end. We are confident that with the economy rocking she will be able to find a job that pays her much more in line with her true skills... which based on her track record hopefully involves more than leading three sequential companies straight into bankruptcy.

Frontrunning: November 2

  • Fed Independence: RIP? (Cumberland Advisors)
  • Evans-Pritchard: It is Japan we should be worrying about, not America (Telegraph)
  • Pandit's "near-death" cash hoard signals lower US bank profits (Bloomberg)
  • Goldman looks to buy Fannie tax credits (WSJ)
  • BNY Mellon CEO Kelly tells BofA: No, thanks (WSJ)
  • Galleon and the trouble with insider trading (WSJ)