U.S. House backs new pay curbs at bailed-out banks

WASHINGTON (Reuters) - The U.S. House of Representatives on Wednesday approved legislation to curb employee pay at financial firms that receive government bailout funds, a measure that could supplant an earlier effort to heavily tax executive bonuses.

The bill, which passed on a 247-171 vote, would give the U.S. Treasury broad powers to prohibit "unreasonable and excessive" compensation and bonuses that are not based on performance standards.

The Pay for Performance Act is among a number of efforts by Congress to claw back bonuses and curb pay in the wake of public anger over executive bonuses at insurer American International Group, which has received a bailout worth up to $180 billion.

(Reporting by David Lawder; Editing by Leslie Adler)