New expense policy governs excessive expenses
Fri 11 Sep 2009
On Sept. 13, a new policy will be posted to the Bank of America Internet site to provide further clarity around expenses that may seem excessive or luxurious.
The "Excessive or Luxury Expenditures Policy" supplements other policies and addresses:
* What may be considered an excessive or luxury expense
* What is prohibited and the applicable reporting process
* How to gain pre-approval for any questionable expenses
* Mandatory results of non-compliance with this policy
"This new policy reinforces the overall Bank of America expense philosophy," said Joe Price, Chief Financial Officer. "We've always been recognized as a leader in managing expenses and it is the responsibility of each and every associate to ensure that we continue to manage expenses, grow our business and deliver a return to our shareholders."
Activities governed under this policy include:
1. Entertainment or events
2. Office or facility renovations
3. Aviation or other transportation services
4. Other similar activities or events to the extent such expenditures in these categories are not reasonable expenditures for staff development, reasonable performance incentives, or other similar reasonable measures conducted in the normal course of the corporation's business operations.
For the purpose of this policy, excessive expenses are considered beyond the normal reasonable limits or lacking reasonable restraint for the normal course of the corporation's business. As such, expense limits may differ between the lines of business.
The new policy is a requirement of the Federal government's Troubled Asset Relief Program (TARP) and is mandatory for all participating institutions
Zen Gardens That Never Were: Vikram Pandit Doesn't Have To Put Up With This Shit Anymore
As you may have heard, earlier today, Citigroup announced that CEO Vikram Pandit would be resigning from his post at the bank, effective immediately, along with several longtime lieutenants. While the news came as a shock to Wall Street, it was assumed that on the inside, employees had been given some advanced warning and time to get used to the idea of life without Uncle Vik. That he hadn't just left in the middle of the night. That those hugs on the elevator Monday hadn't been their last. That he'd stashed something away for them to remember him by. A good-bye note. A glossy 8X10 photo to keep on their desks. SOMETHING. Apparently though, not so much. The news of Mr. Pandit's departure after five years atop the company came as a shock to Citigroup employees, including senior executives. In the firm's London office, some executives emerged from a meeting and read the news on their computers and Bloomberg terminals, well before the bank's internal memo was released. Soon a dozen employees were crowded in front of television monitors, following the story on financial business shows. Others were seen around a water cooler on the trading floor, discussing the news. Still others retreated to their desks to parse Citigroup's recent earnings release, looking for hints of internal conflict. "There's shock," said a Citigroup executive based in New York. "Even senior people were surprised." And while early reports suggested that Count Vikula had simply decided that Citigroup had come so far since he'd taken the gig five years ago that his work was done, and that while it was time to move onto the next stage of his life, he'd cherish the memories and the people he met at Citi, it now sounds like the split was a bit more acrimonious than that. Pandit abruptly stepped down following a clash with the New York company's board over strategy and operating performance at businesses including its institutional clients group, according to people with knowledge of the bank. At this time, some questions that need answering: * Does today's news change Meredith Whitney's opinion of the Big C, which, as of last April was that the thought of it still sickened her? * Where is the comment from Prince Alwaleed, AKA Citi's largest individual shareholder and Vikram's number one fan? * Is Sheila Bair happy? * Will Citi's food services employees treat new CEO Mike Corbat in the manner he's grown accustomed? The ladies who serve and prepare the food at Currier House all have crushes on senior Mike Corbat. The woman who checks off the names--the one sitting at the desk--smiles and winks at him. Then the greyish, plump one who serves the french onion dip giggles, when Corbat quips something that's not-so-funny. And during lunch, a man who also works in the dining room--he's the aged guy, with a slightly arched back who stands around in his red coat--comes over to Corbat and gives him some present all wrapped up in tinfoil. The guy in the red coat paternally pats him on the shoulder and walks away. "I just give them tickets to some of the games," he explains. You see, Mike Corbat is a 6-ft, 3-m, 230 pound dear. Whatever the case. Corbat--an all-Ivy offensive guard on the Harvard football team--may be a dear to the people who work in the dining hall, but he certainly isn't dear to his opponents. People who are dears on the field don't get contacted by at least a half-dozen teams informing him of the possibilities of his playing in the National Football League. * Could all of this have been different if those cheap fucks has just given him his Zen Garden? Citigroup CEO Vikram Pandit Resigns [WSJ] Mike Corbat: All-Ivy And A Perfect Team Player [Crimson via Counterparties] Earlier: Vikram Pandit: HAPPY.AS.A.CLAM Related: "...certain design elements have been nixed since the initial planning phase, including a Zen garden."