I've had enough of Wallstreet thugs! Nobody ever arrests them , they bail them out! Ten percent of $700 rescue package may go to bonuses Posted Oct 19th 2008 8:40AM by Douglas McIntyre Filed under: Management, Industry, Morgan Stanley (MS)
Wall Street walked into the path of its own oncoming stupidity. Of the $700 billion in Treasury rescue money, as much as $70 billion could go to bank and brokerage bonuses.
According to The Guardian, "Financial workers at Wall Street's top banks are to receive pay deals worth more than $70bn (£40bn), a substantial proportion of which is expected to be paid in discretionary bonuses, for their work so far this year." The paper goes on to say that the Morgan Stanley (NYSE: MS) pool is large enough to buy the entire company when its stock was at a recent low.
Although this information get filed under "things you can't make up," it will probably have such a severe backlash that Congress will run hearings until the bankers have exhausted the extra money they are making on legal fees.
The contrary argument to punishing the firms is that some of the people getting big pay-outs work in departments that actually contributed huge sums of money to their parents.
If the management at these firms has any sense at all, they will pay nothing to the staff who worked in operations that lost money and file with the SEC to show the amount of operating income made from the operations where people are getting an extra check.
There will be hell to pay either way. The money is being thrown into the existing bucket with all the holes in it. Nobody has been put in jail. The Glass Stegal act was not put back in place either