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Senate Majority Leader Harry Reid, D-Nev., urged Merrill Lynch (MER) to reject its chief executive John Thain's request for a $10 million bonus at a time when the bank is benefitting from millions of dollars of taxpayer money through the financial rescue package.The Wall Street Journal reported Monday that Thain requested that Merrill's board pay him the bonus, but that board members are resisting doing so. "While American families struggle to keep their jobs and their homes, I question the chutzpah of asking for a $10 million taxpayer-subsidized bonus," said Reid. The $700 billion Troubled Asset Relief Program, or TARP, was designed to have strict limits on executive compensation in exchange for billions of taxpayer dollars to keep the beleaguered financial sector afloat. Lawmakers have expressed frustration at the level of oversight the Treasury has engaged in, with many senior lawmakers saying they would fight against releasing the second tranche of funds to the Treasury so it could distribute more money to financial firms.
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Senate Majority Leader Harry Reid, D-Nev., urged Merrill Lynch (MER) to reject its chief executive John Thain's request for a $10 million bonus at a time when the bank is benefitting from millions of dollars of taxpayer money through the financial rescue package.