Washington, D.C. -  Yesterday, Congressman Joe Donnelly sent a letter, along with 14 other Members of Congress, to Treasury Secretary Timothy F. Geithner asking that he consider compensation practices of “exceptional” companies, such as AIG, Citi and Bank of America, that are receiving a large amount of funds from the Troubled Assets Relief Program (TARP) before granting them additional funds.

“I sent this letter to Treasury Secretary Geithner because I want additional safeguards to be put into place to make sure TARP funds are being used properly,” Donnelly said. “I agree with President Obama that executives of companies receiving exceptional assistance from the TARP program should not be granted hefty bonuses. At the same time, I believe that community banks and financial institutions that played by the rules shouldn’t be subjected to these same restrictions.”

Yesterday, President Obama announced plans to limit executive compensation for “exceptional” companies that are receiving tremendous TARP funds. The letter Donnelly sent to Secretary Geithner requests that he not only enact executive pay limits in the future, but also judge if a company is eligible for additional TARP funds based on how they made use of TARP funds they have already received.

To read a copy of the letter, click here.

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