Treasury Department freezes pay for top TARP recipients

The Treasury Department is freezing the pay for the top executives at the final three firms that received exceptional bailout help. 

Compensation for executives at AIG, Ally Financial, formerly known as GMAC, and General Motors will be frozen at 2011 levels, Patricia Geoghegan, acting special master for the Troubled Asset Relief Program, announced Friday.  

Four of the original seven recipients of exceptional assistance — Bank of America, Citigroup, Chrysler Financial and Chrysler — have exited TARP.

To date, AIG has reduced its obligations to the government by more than 75 percent.  

Treasury has also recovered nearly half of the TARP funds invested in GM and nearly one-third of the TARP funds invested in Ally Financial through repayments and other income.  

For 69 other senior executives at the three firms, Treasury has decreased compensation by 18 percent and has cut total pay by 10 percent from 2011 levels.