Did Lew benefit from bailout bonus?


The Washington Times reports today that Assistant Secretary of State Jacob Lew may have received a bonus for his work at Citigroup, months after the firm received billions in federal bailout money:

Shortly before joining the Obama administration, Deputy Secretary of State Jacob J. Lew reported in a little-noticed government filing that he intended to collect a bonus for his 2008 work at Citigroup even though the Wall Street firm had just received a massive federal bailout.

Now administration officials – who expressed outrage when other bailed-out firms such as American International Group Inc. (AIG) awarded bonuses to executives – are steadfastly refusing to say whether Mr. Lew accepted the money in January or how much of his nearly $1.1 million compensation from Citigroup last year was paid in the form of bonuses.

"Like so many, Deputy Secretary Lew returned to government to serve the public. A review of his public financial disclosure report and his federal salary speaks to that commitment," State Department spokesman Robert A. Wood said, refusing to answer questions from The Washington Times about the size or date of any bonus.

If Mr. Lew accepted bonus payments from Citigroup after the financial services firm was bailed out in November, he might be subject to new rules to force bailed-out Wall Street executives to give up such compensation. The rules, passed in the House and pending in the Senate, impose a 90 percent tax on any bonus paid on or after Jan. 1 to an employee making more than $250,000 per year from a bailed-out firm.

"He’s a major presidential appointee, and if he got a bonus that was received during the bailout, then the same standard that’s being applied to AIG should be applied to him," said Craig Holman, legislative representative at the nonpartisan watchdog group Public Citizen.

Preparing for his Senate confirmation, Mr. Lew reported on an ethics disclosure report filed Jan. 12 that he had received almost $1.1 million in salary and "discretionary cash compensation" in 2008 as chief operating officer at Citi Alternative Investments (CAI), a unit of Citigroup.

On the same Office of Government Ethics form, he also noted that he was eligible for "discretionary compensation for 2008 which I will receive prior to assuming the duties" of deputy secretary of state. The disclosure doesn’t say when Mr. Lew got paid and how much.

State officials also repeatedly refused to provide specifics when pressed by a reporter and senior editor of The Times.

"As a Senate-confirmed appointee, Deputy Secretary Lew was required to provide significant personal and financial information to Congress as well as file a public financial disclosure report," Mr. Wood said, declining to answer the newspaper’s questions. Citigroup declined to comment as well.

Lew was the director of the Office of Management and Budget during the Clinton administration and was focusing on increasing the amount of money going to the diplomatic corps in his position at State. An observant Jew, he was reportedly known during the Clinton administration foralways leaving the office early on Fridays to observer Shabbat.

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