The cash portion of salaries for the 25 highest-paid employees will be slashed 90 percent, according to a person familiar with the plan who spoke anonymously because the details havent been announced. Some cash will be replaced by shares that employees will be restricted from selling immediately, the same person said. An announcement could come this week.
“They have taken a very strong position,” said Gerald Rosenfeld, deputy chairman of Rotshchild Inc. and co-director of New York Universitys Business and Law program. “There are going to be - - - - >

Kenneth Feinberg, the U.S. Treasury Departments special master for compensation who is scrutinizing pay packages at bailed-out banks, suggested that Lewis should get no pay for the year. Lewis agreed, Bank of America spokesman Robert Stickler said Thursday.
In fact, Lewis will pay back about $1 million he has received so far out of a $1.5 million annual salary.
“He will write a check to the company,” Stickler said, adding that Lewis agreed to the proposal because he felt it was not in the banks best interest “to get into a dispute with the paymaster.”
The clawback provision doesnt apply to Lewis previously - - - - >

“We are very eager to dispose of them as soon as possible,” said Ron Bloom, chairman of the Treasury Department task force overseeing GM and Chrysler. “On GM, our expectation is a GM IPO in 2010.”
Bloom said the government would not sell all of its shares at initial public offerings as it could get more money following an IPO should shares of the company rise. He did not give a timetable on such a sale of GM or Chrysler stock.
The U.S. government owns 61 percent of the new General Motors and eight percent of Chrysler. The task force is overseeing - - - - >

A result that surpasses analysts expectations could buoy the stock, giving Ford a chance for an equity offering, said Mirko Mikelic, senior portfolio manager at Fifth Third Asset Management. The average of 12 estimates compiled by Bloomberg is for an adjusted loss of 53 cents a share, from 62 cents in 2008.
“If they beat estimates, it will help them to tap the capital markets,” said Mikelic, who helps oversee $19 billion in fixed-income assets at Fifth Third in Grand Rapids, Michigan, including Ford Motor Credit debt. - - - - >

But with both companies exiting bankruptcy with the federal government as a major shareholder, that promise will be put to the test as the task force shifts roles from negotiator to owner.
The government could face a number of pitfalls: It could be tempted to insert itself into the day-to-day operations or sway management if auto sales continue to slide and carmakers financial woes continue. Lawmakers may try to use the governments ownership as a way to push their own interests, such as making more fuel efficient cars. And the administration will need to sell its stake as quickly as possible.
“I - - - - >

Steven Rattner, who led the Obama administrations work to restructure General Motors Co. and Chrysler Group LLC, announced his departure Monday after guiding the task force since it began in February.
Rattner will be replaced by Ron Bloom, a former investment banker and adviser to the United Steelworkers union, who has played a prominent role on the task force for months. The panel includes representatives of the Cabinet and economic advisers.
Treasury Secretary Timothy Geithner said Bloom will help the government transition from day-to-day restructuring to “protecting the substantial investment the American taxpayers have made in GM, Chrysler and GMAC,” the financing - - - - >

The new GM will emerge from bankruptcy as soon as today with just four car lines, down from eight, aiming for 18.5 percent of the U.S. auto market. Those four surviving brands, Chevrolet, Cadillac, Buick and GMC, accounted for 16.5 percent of the market in June, according to Autodata Corp. Fords share was 17.2 percent, excluding Volvo, which it is selling.
Surpassing GM would validate Fords strategy to go it alone and spurn government aid. While GM and Chrysler LLC seek to change themselves through bankruptcy, Ford - - - - >

With GM poised to exit bankruptcy protection, company leaders pressed House members to overturn an amendment approved late Tuesday by a House committee that would force General Motors Corp. and Chrysler LLC to restore franchise agreements with dealers as a condition of partial government ownership.
“The dealers had to be part of the restructuring - therefore this legislation would be problematic to getting that piece of it done,” said Mark LaNeve, GMs North American vice president for sales and marketing.
The Michigan auto companies are closing nearly 3,000 dealerships as part of their sweeping reorganization plans under bankruptcy protection, a move supported - - - - >

The new GM will emerge from bankruptcy as soon as today with just four car lines, down from eight, aiming for 18.5 percent of the U.S. auto market. Those four surviving brands, Chevrolet, Cadillac, Buick and GMC, accounted for 16.5 percent of the market in June, according to Autodata Corp. Fords share was 17.2 percent, excluding Volvo, which it is selling.
Surpassing GM would validate Fords strategy to go it alone and spurn government aid. While GM and Chrysler LLC seek to change themselves through bankruptcy, Ford - - - - >

Twelve banks have failed this year in Illinois, the most of any state. The seven lenders seized yesterday, with total assets of $1.49 billion and deposits of $1.34 billion, were closed by state or federal regulators and the Federal Deposit Insurance Corp. was named receiver, according to statements from the FDIC. Buyers were named for each of the closed institutions.
The Illinois banks are affiliates of Peotone Bank & Trust Co., in Peotone, Illinois, about 45 miles (72 kilometers) south of Chicago. The failures resulted primarily because - - - - >