Yeah, I want to buy a company that awards a 100 million dollar performance bonus to some trader, even as the company itself fights off bankruptcy and sucks the taxpayer dry for "emergeny" financial aid.
Yeah, that makes a lot of sense......NOT!
I mean, the whole Wall Street financial sector is filled with overpaid sh-theads who not only do NOT deserve bonuses, they don't even deserve their base salaries.
Can you imagine any other business pulling the scams that Citi pulls and getting away with it?
Can you imagine, for example, a copper production company that has a successful exploration division, and finds all kinds of new copper properties, yet the production arm loses billions of dollars? Do you think such a company would ever award its exploration division billions of dollars in bonuses if the production arm of the company happened to be losing bulti-billions? Of course not....and if such a copper miner did provide bonuses of any kind, every Wall Street investment house would SCREAM, sell, sell, sell, sell!!!!
So by what extrapolation of logic does Citi award so much as a dollar in bonuses to any of the dimwits in management there? It's obscene.
The Citi weasels yell, "but you have to honor the contracts, " and I say, "Horsesh-t!" Contracts are changed all the time. For example, when you buy a commodities contract, the CFTC can step in at any time and raise the margin required on the contract. Why is that "breach" of contract allowed, all the time, yet somehow we must honor Citi contracts?????
People need to stop protesting to the politicians, instead, they should gather at least 100,000 people on Wall Street and SHUT THEM DOWN until they put an end to their obscene salaries, perks, bonuses, option grants, etc.
Not 100 percent logical argument.... Yes, the $100M bonus should be halted immediately. The Pay Czar will review this prior to allowing ANY payment to this trader. If the trader doesn't like the results he should get another job. As a major stockholder in C, I say the guy gets stiffed. C is actually in pretty decent shape considering the company's been through the equivalent of three car-jackings and four muggings. The stock is at bottom and the company will rebound as BOFA has done. 12-month target is $10 - $12 a share.
I completely disagree. As a stockholder you can sell your share if you don;t like the company. But this guy has a contract that both parties agreed to. Unless there is a clause in it that give C an out they should pay him the money. As for the pay czar, the government should not be allowed to determine the pay of anyone but government employees. And the TARP/conversion does not make C employees government employees.
We cannot allow the current circumstances to become a reason to change our government, our rights as citizens, and out free enterprise system. The governmnet never mention pay when the TARP was forced on banks. They should shut up and let the free market take its course.
I love all of the idiots who talk about breaking contracts so casually. Imagine if your employee handed you a paycheck next week for half its normal value and said, "times are tough so I cut your salary in half".
Or how about you have a contractor who does osme work on your house and bills you double the estimate. You wouldn't scream? Of course you would. So why is this guy any different?
His bonus is based on how much profit he makes for the company. Its a performance bonus. If he was successful he should get what he and Citi agreed to when they signed the contract.
If we can just throw contracts out like whenever we want, then we have no system. We may not like his contract, although I don't think its your business either way, but its a contract.
When Brad Pitt gets $25MM to make a crappy movie, do you complain?
CITI scammed ignorant loan requests knowing full well they couldn't pay for the loans they shoved down their throats, painting a wealthy picture if they'd just accept the risk. It backfired and I'm supposed to bail out your greed corrupt azz? Yer gonna go under after you R/S.