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Cutting salaries to $500,000 made them "cash poor," Carpenter said. "This individual is in their early 40s, with two kids in private school," Carpenter was quoted as saying. "We were concerned that these people would not meet their monthly expenses due to the reduction in cash." Ally officials opposed pay reductions despite Feinberg's concerns that most of the company's top 25 employees "were part of the problem that resulted in the need for a bailout," the report said. In a letter to Romero, Treasury officials said they wanted to keep salaries competitive to protect taxpayers' investment. And Feinberg cut total compensation at the seven companies by half and cash compensation by 90 percent, they noted. Some lawmakers had expressed similar criticism that Feinberg hadn't been aggressive enough in cracking down on pay. Feinberg announced in July 2010 that he wouldn't try to recover $1.6 billion in compensation given to top executives at 17 bailed-out banks. While he said he thought the banks had made "ill-advised" payments, he decided not to try to force repayment of the money. Feinberg said in a final report in 2010 that he thought his work had helped reform compensation policies.
[Associated
Press;
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