Wednesday, February 10, 2010, 5:14AM ET - U.S. Markets open in 4 hours and 16 minutes.
The cataclysm on Wall Street did not stop New York City-based employees from collecting $18.4 billion in bonuses for 2008. Sure, that pool is down 44% from the prior year but still represents the sixth-largest bonus haul on record, according to the NY State comptroller's office.
So after the worst year ever, Wall Street collected its sixth-biggest bonus pool. Makes perfect sense.
But whether its John Thain's rationale for paying Merrill employees accelerated bonuses (or any bonus for that matter), Citigroup's purchase of a $50 million corporate jet (before reneging), or the sickening vapidity of the DABA blog, it's clear many people on Wall Street remain completely out of touch with reality.
"The sense of entitlement that's been engendered in this group of people has clearly not been beaten out of them by the brutal performance of the financial sector over the course of the last year," says Bob O'Brien, stocks editor at Barrons.com.
Of course, what's most sickening to the vast majority of Americans is these bonuses were paid (mostly) by the same firms who've received TARP funds. The rationale that "bonuses must be paid or we'll lose our best people" doesn't hold water when everybody on Wall Street is suffering and cutting back. Similarly, the idea "there are separate pools of capital for bonuses vs. lending" doesn't hold water when Wall Street CEOs say "money is fungible" as a way of explaining why they can't track TARP funds.
Since Wall Street is clearly incapable of policing itself, the biggest question now is whether the Obama administration, Congress and Treasury Secretary Geithner will summon the political will and do the right thing -- attach major strings on future bailouts, including:
if BO does anything first it should be to limit bonus pay for any company that gets bailout money
I hope these executives got really good tax breaks.
The thing that makes me wonder is if the Russians had had the technology,(specifically cheap and mass internet access) before the financial collapse that eventually lead to the break up of the USSR do you think they would be talking about what were talking about? We have to ask ourselves as people who need to survive, how far are we willing to let go before we stop it.When the rich take everything and run and were left holding the bag history is going to look back and ask how we never saw it coming.
The thing that makes me wonder is if the Russians had had the technology,(specifically cheap and mass internet access) before the financial collapse that eventually lead to the break up of the USSR do you think they would be talking about what were talking about? We have to ask ourselves as people who need to survive, how far are we willing to let it go before we stop it.When the rich take everything and run and were left holding the bag history is going to look back and ask how we never saw it coming.
American greed! It never ends. They make me want to take my money and put it in my mattress.
We cannot begin to recover until trust is restored. Trust depends entirely on transparency. Paying out huge bonuses while crying to Congress for taxpayer money smacks of deceit. Sooner or later, people's anger at this kind of behavior will boil over and there will be violence. Right now, organizations still have a chance to restore trust voluntarily. If they don't take that opportunity, it is going to be forced upon them, and blood will spill.
Privitize gains and socialize the losses. This is WORSE than socialism. It is outright theft of the people. At least in socialism, gains are socialized as well. I can't believe people aren't storming the capitol. The banks should be nationalized (i.e., the US govt gets full ownership) or let fail. This BS where their bad assets will be bought by the US govt (bad bank) with no or de minimis strings attached is not socialism it is complete thievery. The US is doomed.
Guess what bankers and brokers......you deserve NOTHING....you've run your companies into the ground and yet you want a bonus because you think you can't be replaced and you think you are "good"at what you do.......BS...where will you go? You are entitled to NOTHING!!!!
Vote with your feet consumers. Don't put your money in any company that pisses away money in this fashion. The message that gets sent there is that if you keep doing this, then you won't have anymore money to pay these losers. Good companies will always pay for good and legal performance. Everybody else needs to get punished by the marketplace. Of course congress circumvents that with bailouts, but even they will stop doing when the dollar crashes. The end of the dollar is near.
Blame the 'main stream media' for not being pro-active ever!
Put these people under a highway overpass or in tents so they understand how they effect people. And now we save these BIG GUYS......because we need them to RIP US OFF.....Where are our elected officials.... in bed with these guys?
We also need to only ever pay executive, especially CEO, bonuses in stocks / options and forbid sale of these until at least one year after the executive leaves the company. That way CEOs (and other execs) will be forced to care primarily about the health of the company, and will think twice about leaving a sinking ship.
Corporations hire far less than 10% of American workers and hold about 90% of the wealth. The rest of the jobs are small business and government. Why worry so much about corporate/wealthy American's tax breaks?
nationalize the banks and clean it up then spin them out. it's already socialism (socialized losses) so the conservative argument doesnt work. it's now just a matter of execution which these welfare recipients have been unable to do.
Our congressmen, senators, and the treasury secretary are the ones to blame. I'm sure they thought about limiting Wall Street compensation in the TARP bill, but they chose to avoid the issue for the majority of Wall Street employees. The banking industry puts a lot of money into political coffers, so it's unlikely that any real form of compensation regulation will come from our politicians.
We also need to only ever pay executive, especially CEO, bonuses in stocks / options and forbid sale of these until at least one year after the executive leaves the company. That way CEOs (and other execs) will be forced to care primarily about the health of the company, and will think twice about leaving a sinking ship.
Bonuses? For what… screwing up the economy? It amazes me that average Americans haven’t figured out the “scam.” ----------------------------------------------------------------------------------------------------- Why Bush, Bernanke and Paulson gave technically insolvent banks such as Citibank, Bank America etc. billions of dollars while average taxpaying Americans were kicked to the side of the road by Congress and left drowning in their debt. ------------------------------------------------------------------------------------------------------------------------------------------------------------ You see, the Paulson Treasury and Bernanke Federal Reserve practiced welfare for Wall Street and the super rich billionaires. The Federal Reserve is owned by the very Mega Banks it bailed out. ------------------------------------------------------------------------------------------------------------- Think about this, if the Worlds top 20 Banks go down they take the Worlds Elitist top 1% with them. --------------------------------------------------------------------------------------------------------------------------------------------------------- Remember, deposits are insured by the FDIC up to $100,000 per family member listed as POD and payment on deposits over that amount are payable subject to liquidation of bank property/assets. ------------------------------------------------------------------------------------------------------------------------------------------------------ How many of the Yahoo readers have hundreds of millions or billions of dollars in banks to worry about? ------------------------------------------------------------------------------------------------------------------------------------------------------------ Probably none. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ If you truly want vengeance on the super rich then call your Congressman today and say… “stop the big bonuses"... "Don’t bailout another business"... "bank, investment bank and/or insurance company"... "No more tax breaks or money for business or the financial industry let them go under” and “use Fed and Government money to prop up the FDIC, create jobs program, education and national healthcare program.” ------------------------------------------------------------------------------------------------------------------- Again, let the banks and/or investment banking go under and the FDIC pick up the tab. The little money you or I have is covered by FDIC Insurance... let the millionaires and/or billionaires “Eat Cake!”
Ro 14:12 So then every one of us shall give account of himself to God. " Judgment is coming!"
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david - Thursday January 29, 2009 12:25PM EST
There is no "real world thinking". Let the sob's come to Michigan and see what its like trying to pay the heating bills, and getting someone to answer the phone so you can get unemployment help. LaLa Land thinking needs to be brought to an end.