NO BONUSE$ FOR YOUi WHY PAULSON MUST STOP WALL ST., BANK EXCESS

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krogoth's picture
krogoth
Status: Platinum Member (Offline)
Joined: Aug 18 2008
Posts: 576
NO BONUSE$ FOR YOUi WHY PAULSON MUST STOP WALL ST., BANK EXCESS

By NELL MINOW

Posted: 3:21 am
November 2, 2008

Secretary Henry Paulson came up with a $700 billion emergency plan to pour government money into the Wall Street firms to save them from collapsing - not to fund a bonus pool for the billionaire boys' clubs of the investment banking firms. It is the economy that is supposed to be bailed out - like the millions of homeowners currently or soon to face foreclosure - not the bankers.

If Paulson does not stop the bailout companies, like Goldman Sachs, Merrill Lynch and Morgan Stanley, from writing big bonus checks to their executives, those payments will make the future viability of the world's best banking system as unstable as a portfolio of sub-prime mortgage derivatives. Stopping the big bonus bonanza would be the right thing to do - and Paulson must do it for five big reasons.

1. It is hypocritical. The Wall Street guys always rhapsodize about the perfection of the free market - until it stops showering them with money. Then people who are already in the top fraction of a percent of the wealthiest people in the world want to be "made whole" with billion-dollar welfare checks.

2. It is unfair. The only justification for multi-million-dollar pay packages is that they reward performance. That means that in a bad year what had gone up must come down.

3. It is infuriating. I've observed many financial scandals, from the savings and loan failures through Enron, WorldCom, and post-Sarbanes-Oxley messes like backdated options. All were recognized as tragic but not pervasive - compartmentalized as the corruption of a limited group of individuals.

But across the country, people see this mess as central to the operation of Wall Street and we are outraged at having to take money that would better be spent on education, the environment, paying down the debt - or lowering taxes - and spend it on making up for the greed and stupidity of a bunch of rich people trying to get richer.

4. It makes it easier for our competitors in global markets. The rest of the world has never really tried to compete with our investment banks, intimidated by their power, expertise, and reach. The current mess has opened up new opportunities for non-US financial institutions.

5. It is asking for trouble from Washington. I'd hate to be a politician who voted for the bailout and has to explain how this money got diverted from customers to bankers. If Wall Street cannot accept some responsibility for creating this problem, Congress and the regulatory agencies will be more than willing to step in to make them.

Ray Hewitt's picture
Ray Hewitt
Status: Gold Member (Offline)
Joined: Apr 5 2008
Posts: 458
WHY PAULSON MUST STOP WALL ST., BANK EXCESS

Get real Krogoth. These people have no scruples about draining every last cent out of the private economy to stay in power. They don't care if they turn the US into another Cuba, as long as they stay in power. Anybody who has financial assests is a sitting duck.

Think of the insanity of our system of government. The people give a small minority the power to make laws, judge laws, enforce laws - and be immune from those very same laws. Then people wonder why they have to put up with so much criminal behavior at the top echelons of power.In their fear of a violent society without government to maintain order, they created a violent class with no order.

PS - your headlines are too long.

dcary's picture
dcary
Status: Bronze Member (Offline)
Joined: May 31 2008
Posts: 25
Re: WHY PAULSON MUST STOP WALL ST., BANK EXCESS

From Agora Financial....

“Major U.S. banks are using their bailout billions to prop up dividends,” reports our intern cum research maven Jim Nelson.

“Bank of America, JPMorgan Chase, Citigroup and the rest of the crew are starting to cash in their government bailout checks. And in a ‘you gotta be kidding me’ moment, we find out that they aren’t using all of that money to repair bad assets or offer more loans. Instead, these banks are continuing their dividend payments, which otherwise would probably have been cut.

“Wells Fargo, one of the few banks to swim through this mess with little problems, is using $4.4 billion of its $25 billion bailout to hand over to shareholders. Not loosen the credit market, not invest in small businesses or financially sound homeowner hopefuls… Nope, to keep their
 shareholders”

“News of these schemes is finally hitting Washington, and the likes of Sen. Chuck Schumer are speaking out. But it’s too late. These dividend plans are already in effect, and our money is lost…

Here’s the shortlist of the offenders:

These guys should go to jail, along with the Congress that wrote such a thoughtful bill

EndGamePlayer's picture
EndGamePlayer
Status: Platinum Member (Offline)
Joined: Sep 2 2008
Posts: 546
Re: NO BONUSE$ FOR YOUi WHY

What a bunch of jack *sses.

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