Executives on Wall St. received record bonuses in 2007 while shareholders get screwed.For example,it's true that someone like Angelo Mozilo, who started Countrywide,worked for many years building the company,took big risks, and grew the company's profits for shareholders(and himself.) should be able to get bonuses,options and to become wealthy.The problem is once the company goes bankrupt all of the value that was created is gone, BUT HE GETS TO KEEP THE MONEY! That SOB lied just like Bernie Ebbers and Jeff Skilling.He sells the company to BAC and gets away with millions.
And now the market is excited over these companies printing stock certificates:
"09:45 am : Stocks open on a high note, with each of the major indices posting a gain of at least 1%. Headlines this morning were seemingly negative.
UBS (UBS) announced $19 billion in write-downs--bringing its total write-down to $33 billion. It also is seeking shareholder approval to raise roughly $15.1 billion in fresh capital. Meanwhile, Deutsche Bank (DB) announced a write-down of $3.9 billion. Lastly, Lehman Brothers (LEH) is raising $4 billion in a preferred stock offering to shore up its capital position.
These stocks are actually trading higher on the news, which in turn, is lifting the financial sector to a strong 4.1% gain. Traders are betting that the worst of the subprime mess may now be over, and were pleased to hear that the Lehman Brothers offering had higher than expected demand."