Since the bonus ban situation is fluid, it is worth considering how far a bonus ban on all TARP, or indeed, all bailout recipients would actually reach. It depends on the answers to a series of questions like, "are subsidiaries of bailout recipients covered?" "Do they have to be majority owned subsidiaries?" "Parents of bailout recipients?" "What about firms that got financial guarantees but not actual cash?" and the like. Still, you might be surprised. For example:
- Blackrock is one third owned by PNC, which took about $7.5 billion in bailout money.
- Harris Williams, the mid-market investment bank is a PNC subsidiary.
- Lava Trading is a Citigroup subsidiary.
- Transaction processor Elavon Merchant Services/NOVA information systems is a U.S. Bancorp subsidiary.
- American Express Travel is, obviously, an American Express subsidiary.
- CIT Group holds dozens of shipping marine leasing and marine holding company assets.
Of course, this doesn't even begin to touch the reach if firms that have taken financial guarantees, like GE Capital, are included.
No bonus for you!