Job cuts at CitiBank; bailout bill for automakers; execs decline bonuses

| 11/17/2008

In a sign of the economic times, CitiBank officials announced on Monday , Nov. 17, that they will cut 53,000 jobs by next September. They also said they will cut expenses by 20 percent.

CitiBank is the fourth-largest bank in the U.S.

In other economic news Senate Democrats were expected to introduce a bill Monday that would give the Big Three automakers another $25 billion on top of the $25 billion that’s already been promised for the production of more fuel-efficient cars.

CBS reported that Republican opponents have branded the U.S. auto industry a “dinosaur” that doesn’t deserve a taxpayer bailout.

President-elect Obama supports a bailout and said on the CBS television program “60 Minutes” that his administration will do “whatever it takes” to revive the nation’s economy.

In another boost to the economy, the CEO of the investment bank Goldman Sachs and five other top executives have announced they don’t want bonuses this year, and the company’s compensation committee quickly agreed.

That means CEO Lloyd Blankfein and the others will get their base pay of $600,000 – but no extras. Last year, with bonuses, Blankfein made more than $68 million.

The executives had a big incentive for giving up the bonuses. Goldman Sachs is getting a $10 billion taxpayer bailout, and New York’s attorney general recently warned that using bailout money for bonuses would be breaking the law.