New York’s Cuomo Demands Bonus Data From Bailed-Out Banks

Cuomo yesterday sent letters asking for a description of each firm’s 2009 bonus pool, how it was established, how compensation is tied to performance, and how the bonus pools have changed, if at all, as a result of the firm’s receiving and repaying taxpayer funds. Almost all the banks have repaid the money.

Cuomo’s announcement came amid reports that Wall Street’s 2009 bonus season may be one of its largest, sparking a public and political backlash. The attorney general also asked for a list of the top 200 bonuses paid by each firm and a description of each bank’s rate of lending over the past three years. He set a response deadline of Feb. 8.

“Transparency and disclosure of the banks’ practices and plans are essential especially at this time,” Cuomo said in a teleconference with reporters.

Besides Bank of America and Goldman Sachs, the attorney general demanded the information from JPMorgan Chase & Co., Bank of New York Mellon Corp., Citigroup Inc., Morgan Stanley, State Street Corp. and Wells Fargo & Co.

Cuomo said his office had a right to the information “to make sure they are following the law, that there is no fraud, that there’s adequate disclosure.” He said his jurisdiction was the Martin Act, the state securities law.