US Treasury Secretary Timothy Geithner denied on Sunday the Obama administration was crafting bailout initiatives to allow companies to evade limits on executive pay and other restrictions imposed by Congress. “No, that's not true,” Geithner said when asked about a report in Saturday's Washington Post that the White House was trying to allow some exceptions. “Now, our obligation is to apply the laws that Congress just passed on executive compensation and we're going to do that,” he told the CBS program “Face the Nation.” “We're also going to make sure that these programs are as effective as possible in making credit more available to businesses and families across the country.” Executive pay restrictions are among efforts by Congress to claw back bonuses and curb pay amid public anger over executive bonuses at insurer American International Group, which has received a bailout worth up to $180 billion. The “Pay for Performance Act of 2009” was passed by the House of Representatives last week and now goes to the Senate. Bailouts could cost taxpayers more The original figure in January was $189 billion, but it is now $356 billion - $152 billion more for 2009 and $15 billion more next year, the Congressioanl Budget Office said in its March report updating the budget and economic outlook. The CBO raised its projection because yields have increased on securities issued by the bailed-out financial institutions under the $700 billion Troubled Asset Relief Program. That means there will be an increase in the cost of the subsidy from the US Treasury's purchase of preferred stock, asset guarantees and loans to automakers, the CBO said. Bailing out Fannie Mae and Freddie Mac - the two mortgage finance giants taken over by the government in September - will cost another $52 billion this year alone, and an additional $28 billion for their activities from 2010 to 2019, says the CBO.
