Crowley to Financial Sector: It's a New Era of Responsibility

February 4, 2009
Press Release

Washington, D.C. – Congressman Joseph Crowley (D-Queens, the Bronx) released the following statement in support of President Barack Obama’s new regulations limiting compensation for executives of financial institutions receiving Federal assistance:

“It is important for the financial sector to realize that it is no longer ‘business as usual’.  Their business plans and budget blueprints from just a year ago, no longer apply. 

“We’ve entered a new era of responsibility, one that will require all Americans to sacrifice in the effort to jumpstart the economy.  But, sacrifice cannot be limited to the dining rooms of Main Street; it must also apply to the board rooms of Wall Street.  The new guidelines issued by the White House today will ensure that the nation's financial institutions respect their largest stakeholder – the American taxpayer.

“Trillions in taxpayer dollars have been pumped into our financial institutions to prevent the collapse of the American economy, but we need to draw the line at rewarding those who have brought us to the brink of national insolvency.

“I applaud President Obama’s announced cap on executive compensation for companies who receive major federal assistance.  I look forward to continuing to work with the President in the weeks ahead to increase transparency and accountability and to implement common-sense measures that will put our nation on the path to economic recovery.”

Congressman Joseph Crowley is a member of the exclusive House Committee on Ways and Means and spearheaded, along with Congressman Paul Kanjorski (PA-11), the call for additional accountability measures for companies receiving Federal funding.  Specifically, Congressmen Crowley and Kanjorski recently worked to expose egregious compensation practices at AIG, including inappropriate deferred compensation for former employees and million-dollar bonuses in 2009 for executives in AIG-FP, the division whose reckless losses brought about the near-collapse of the financial giant.