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Banks Expand Perks to CEOs Despite Taxpayer Bailouts

HeadlineOct 20, 2009

The Washington Post reports many of the nation’s largest financial firms have been boosting the perks and benefits their chief executives receive, even while the federal government was spending hundreds of billions of dollars to save the firms. Kenneth Lewis of Bank of America and Jeffrey Peek of CIT Group each received about $100,000 more than a year earlier for personal use of corporate jets. Ralph Babb, chief executive of Dallas-based lender Comerica, was compensated for a new country club membership, with an initiation fee and dues of more than $200,000. GMAC Financial Services chief executive Alvaro de Molina benefited from a $2.5 million payment from his company to help cover his personal tax bill. On average, the chief executives at twenty-nine of the largest public financial companies that have taken bailout funds received perks and benefits worth more than $380,000 in 2008.

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