TARP Watchdog: Treasury Failed To Rein In Pay At Bailed-Out AIG, GM, Ally Financial

Back in 2008, when Congress passed the Troubled Asset Relief Program, one of its aims was to curb excessive pay for the top managers at firms that needed taxpayer-funded rescues. The thinking went that executive compensation in the period leading up to the crisis encouraged excessive risk-taking, with well-paid employees getting all the reward and the federal government saddled with the costs of the aftermath when things went horribly wrong.