Cuomo pushes banks for bonus info

By David Ellis, CNNMoney.com staff writer


NEW YORK (CNNMoney.com) -- New York Attorney General Andrew Cuomo pressed eight of the nation's biggest banks for details on their bonus payment plans Monday, putting Wall Street's pay practices under yet another layer of scrutiny.

Cuomo ordered Citigroup (C, Fortune 500), Goldman Sachs (GS, Fortune 500), JPMorgan Chase (JPM, Fortune 500), State Street, Bank of New York Mellon, Bank of America (BAC, Fortune 500), Morgan Stanley (MS, Fortune 500) and Wells Fargo (WFC, Fortune 500) -- the original recipients of federal bailout money -- to submit details on their bonus programs in an effort to see if they had made any progress rooting out some of the destructive pay practices that helped fuel the recent economic crisis.

"We are exploring exactly how banks determined compensation this past year," Cuomo said during a conference call with reporters Monday.

Monday's announcement is the latest effort by New York's top law enforcement officials to shine a harsh light on Wall Street pay practices. Last July, Cuomo's office published a scathing rebuke of banks' 2008 compensation practices, charging that most financial firms paid out compensation that was nowhere close to their overall yearly performance.

To understand the complete picture, Cuomo asked each company to submit details on how they calculated bonuses, how their bonus pool would have been affected had they not received bailout funds and the total value of bonuses awarded in 2009.

Many large lenders are believed to be on track to pay out some of their biggest bonuses since the crisis first erupted nearly three years ago. That has incensed both lawmakers and the American public at a time when millions of workers are out of a job.

Hoping to rein in Wall Street's bonus practices, the Obama administration is considering a fee or tax on the financial industry after taxpayers stepped in to save the industry last fall, according to several media reports. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,959.44 154.64 0.87%
Nasdaq 4,781.42 16.04 0.34%
S&P 500 2,078.54 7.89 0.38%
Treasuries 2.16 -0.01 -0.64%
Data as of 9:35pm ET
Company Price Change % Change
Gilead Sciences Inc 92.90 -15.55 -14.34%
Bank of America Corp... 17.71 0.09 0.51%
Apple Inc 112.94 1.16 1.04%
General Electric Co 25.71 0.09 0.35%
Facebook Inc 81.45 1.57 1.97%
Data as of 4:00pm ET

Sections

Private equity titan CEO David Rubenstein drops some rhymes in a holiday message to investors. More

Sure you could spend more this holiday, but your better bet is to put the money you save in your 401(k). More

So, North Korea's Internet went down. What is it like anyway? There are PlayStations, XBoxes and a MacBook. More

Unilever sued Hampton Creek over its egg-free mayonnaise spread Just Mayo. But the company behind Best Foods and Hellman's mayonnaise has now dropped the lawsuit. More

Retired union workers could see their pensions cut under a controversial new law, but many say they're not sure how they'll make ends meet if big cuts go through. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.