Pay czar didn't try to recoup 'ill-advised' pay

WASHINGTON (AP) — The Obama administration's pay czar said today that he did not try to recoup $1.6 billion in lavish compensation to top executives at bailed-out banks because he wanted to avoid another public fight over banker pay.

Ken Feinberg said 17 banks receiving taxpayer money from the $700 billion financial bailout made "ill-advised" payments to their executives. But he stopped short of calling them "contrary to the public interest," language that would have signaled a fight to get it back.

Of the 17 banks he criticized, all but five have repaid their bailouts.

Among the companies he let go are two whose bailouts will cost taxpayers billions: American International Group Inc. and CIT Group Inc.

Rather than demanding they return the money, Feinberg invited the 17 banks to give their boards of directors more power to withhold pay during future crises. The request was voluntary.