Federal pay czar Kenneth Feinberg said he is unlikely to recommend pay cuts for senior executives at hundreds of smaller banks that received TARP bailout money.
This is the first time Feinberg has said compensation at smaller banks is likely to emerge unscathed from his review. He will spend the next three weeks scrutinizing the pay plans at some 400 smaller TARP banks.
"I haven't asked" any smaller banks for any pay cuts or refunds, he told CNBC while attending a conference at the New York Stock Exchange. "And, frankly, I don't think I will."
Feinberg said he has legal authority to reduce pay only for the top 175 officials among the seven biggest companies that got billions in TARP. Only four of firms those still haven't repaid the bailout money: AIG , the former GMAC, General Motors and Chrysler.