Anderson Cooper | BIO
AC360° Anchor

Obama's Pay Czar Kenneth Feinberg is in charge of reviewing pay plans at biggest bailout firms.

David Ellis
CNNMoney.com

The Obama administration will soon order the nation's biggest bailed-out companies to drastically cut pay packages for their top executives, a senior administration official confirmed to CNN Wednesday.

Kenneth Feinberg, who was named the White House's pay czar in June, will demand that the seven largest bailout recipients lower the total compensation for their top 25 highest paid employees by 50%, on average, the official told CNN.

For the past two months, Feinberg has been reviewing pay plans at Citigroup (C, Fortune 500), AIG (AIG, Fortune 500), Bank of America (BAC, Fortune 500), General Motors, Chrysler, GMAC and Chrysler Financial in an effort to put these firms in a position to pay back bailout money as soon as possible.

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Editor's Note: Special Inspector General of the Troubled Asset Relief Program Neil Barofsky originally delivered this report to the House of Representatives Committee on Oversight and Government Reform. Read the full report.

AC360°

Neil Barofsky has been referred to as the "TARP Watchdog" since appointed the position in December. Presenting this report to the House Committee on Oversight and Government Reform, Barofsky reveals a detailed account of just how AIG structured their complex system of compensation and bonus plans. From a $7,800 "retention award" to a kitchen assistant to more than $3 million to an executive, the company rewarded an extensive amount of bonuses even after it's taxpayer funded bailout in 2008. But why didn't the government step in? Read the full report and see a timeline of when both government officials and company executives knew of key AIG Compensation Matters.

Editor's Note: This featured report entitled "No Rhyme or Reason: The 'Heads I Win, Tails You Lose' Bank Bonus Culture" was originally prepared by New York State Attorney General Andrew M. Cuomo.

AC360°

Tonight we're taking a look at the culture of bonuses on Wall Street. This year, the U.S. financial sector is on track to dole out a record amount in bonuses. We are taking a close look at nine of the original TARP recipients, including Goldman Sachs, JP Morgan Chase, Merrill Lynch, and Bank of America. These financial giants were among the first recipients of assistance from the original TARP Package.

New York State Attorney General Andrew Cuomo released a report updating just how the companies distributed their earnings. This report breaks down where all the money went with the specific amounts of salaries, bonuses and government money (i.e. your tax dollars) for each firm.

Check out the full report here.

David Goldman
CNN

The government is engaged in a far-reaching – and expensive – effort to rescue the economy. Click here to keep tabs on the bailouts.

CNNMoney.com

CNNMoney.com is tracking developments in the economic rescue as they happen. Find out how much money the government is putting on the line.

Click here to follow the money...

Program Note: Tune in tonight to hear more about a potential second stimulus from Ed Henry and Ali Velshi. AC360° at 10 p.m. ET.

CNNMoney.com

The government is engaged in a far-reaching – and expensive – effort to rescue the economy. Here's how you can keep tabs on the bailouts. Take a look at these stimulus programs designed to save or create jobs and jumpstart the economy from recession.

Former Fed Chairman Alan Greenspan, shown here in 2008

Andrew Torgan
CNN Financial News Producer

One year after the Troubled Asset Relief Program was signed into law, the TARP’s top cop says federal officials weren't entirely honest with the public about the health of the first nine financial firms that got bailouts.

Bailout Special Inspector General Neil Barofsky says in an audit that Treasury Dept. officials painted an overly rosy picture, creating “unrealistic expectations,” when they called the first bailout banks “healthy” institutions that would be able to lend more with government help.

Separately, the new audit looks into charges that government officials strong-armed Bank of America into completing its planned purchase of Merrill Lynch, even as BofA worried about mounting losses at Merrill in late 2008. Further, the report looks into whether officials pressured BofA to conceal those losses from shareholders.

Barofsky's office was created by the Emergency Economic Stabilization Act of 2008, which established the $700 billion federal bailout program. This audit is the fourth completed so far by the watchdog in recent months, but the first that looked at how banks said they used their bailout dollars.

Greenspan says unemployment will top 10%

Former Fed Chief Alan Greenspan over the weekend joined the chorus of politicians and pundits who say unemployment will top 10%, even though he believes the U.S. economy will grow more than expected in the third quarter.

Greenspan told ABC’s “This Week” that he expects 3% growth in the third quarter, up from the 2.5% he previously predicted. However, he said that the “pretty awful” September employment report released Friday showed the jobless rate continued to climb.

A slowing or halt in job losses is different than reversing the rise in unemployment, Greenspan noted, adding that the nation's unemployment rate - currently 9.8% - is “going to penetrate the 10% barrier before heading down.”

That prediction matches previous comments by President Barack Obama and others who say that unemployment is a lagging indicator in an economic recovery.

“Gourmet” gone… “Cookie” crumbles…

“Gourmet” magazine, which has amassed a devoted following over nearly 70 years of publication, will be shut down, publisher Condé Nast said.

The magazine, introduced in 1940, is expected to close by the end of the year.

“Gourmet,” which has nearly 1 million subscribers, fell victim to a decline in magazine advertising and followed a companywide review of magazines. 

In addition to “Gourmet,” Condé Nast said it was also shuttering parenting magazine “Cookie” and two wedding magazines, “Elegant Bride” and “Modern Bride.”

Follow the money… on Twitter: @AndrewTorganCNN

CNN

The government has spent at least $3 trillion to fix the economy, although that includes loans and investments that might one day be recouped. It has allocated, or set aside, at least $10.6 trillion to spend if needed. Where is all of this money going?

Take a look at this interactive that tracks the bailout money.

David Goldman
CNNMoney.com Staff Writer

The collapse of Lehman led to a deeper recession and a litany of government programs to try to end the pain. We rate just how bold and effective the plans have been so far.