The U.S. Treasury failed to rein in pay at companies that received federal bailout funds, a watchdog said yesterday in a report that highlights continued friction over the government's oversight of executive pay at companies such as General Motors Co. and Ally Financial Inc., the Wall Street Journal reported today. The Treasury in 2009 gained power to approve executive pay at firms that received major federal assistance during the financial crisis, following public outrage over big bonuses paid at American International Group Inc. after its financial rescue. Both General Motors and Ally Financial still are subject to the pay oversight. The Treasury recently unloaded its remaining shares in AIG, so it no longer has to submit pay packages for government approval. Christy Romero, the Special Inspector General for the Troubled Asset Relief Program, yesterday said that the Treasury failed to look out for taxpayers by relying "to a great extent on the companies' proposals and justifications without conducting its own independent analysis."
