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Bailed-Out but Still Giving Bonuses

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posted on Oct, 26 2008 @ 03:34 PM
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Bailed-Out but Still Giving Bonuses


abcnews.go.com

Kucinich voted against the $700 billion bailout package, saying that he "had great suspicions" that the money wouldn't help stop the flood of foreclosures. Reining in excessive executive compensation was promised as part of the bailout plan. Now it appears, Kucinich said, that such promises aren't coming true and that some firms might even be using the cash from the federal bailout to reward employees.

"That raises questions about the legitimacy of the bailout and we really need to find out how widespread this is," he told ABC News today.
(visit the link for the full news article)


Related News Links:
www.guardian.co.uk
www.businesssheet.com
www.guerrillanews.com
wallstreetpit.com

Related AboveTopSecret.com Discussion Threads:
Wall Street banks in $70bn staff payout




posted on Oct, 26 2008 @ 03:34 PM
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I couldn't agree with him more!

None of these people should be getting rewarded!

Rewarded? Hell, they should be prosecuted! (Which I've read will happen)

The article claims that after "The Guardians" article that claimed Wall Street banks paid out $70 billion in bonuses this year, the company AIG agreed to freeze paying one FORMER employee $16 million and another to freeze another $600 million in bonuses that was set aside for executives!

After Kucinich read the article, and THEN heard about AIG freezing it's "compensation packages", is when he decided that Congress should look into this and that "additional congressional action may be warranted".

If you ask me it is a criminal act (or at least should be) for these executives to give themselves these HUGE "compensation packages" at the expense of the American taxpayer and our economy!

This money wasn't given to these companies to "GIVE to their employees, but to shore up the company and the US economy. All it seems like they are doing with this money is having a party with it! Paying each other HUGE bonuses and buying other companies!

It's hard to believe, with the "Bailout Bill" going from 3 pages at the beginning to over 450 pages or so that this wasn't covered!

abcnews.go.com
(visit the link for the full news article)

[edit on 10/26/2008 by Keyhole]



posted on Oct, 26 2008 @ 03:46 PM
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Here's a video from CNN with Kucinich!

Kucinich to Ask Congressional Colleagues to Take Action


In this video, it shows (in a screen shot) that the following:

Banks Funds For Pay and Bonuses
First 9 months of 2008

Goldman Sachs.- $13.5 B
Morgan Stanley.- $10.7 B
Merrill Lynch.....- $11.2 B
Citi Group.........-$25.8 B
Total................- $61.2 B

This is what they kept paying their executives while watching their company going down the drain instead of using this money to help the company out of its jam!

[edit on 10/26/2008 by Keyhole]



posted on Oct, 27 2008 @ 04:20 PM
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Here's another article saying how with the bailout, Wall Street bonuses will only drop 40%, but without the bailout, their bonuses would have dropped 70%!

How Washington's Bailout Will Boost Wall Street Bonuses


Uncle Sam has a new name on Wall Street — Sugar Daddy. Bonuses for investment bankers and traders are projected to fall by 40% this year. But analysts, compensation consultants and recruiters say the drop would be much more severe, perhaps as much as 70%, had it not been for the government's efforts to prop up the financial firms. "Year-end pay on Wall Street will be higher than it would have been had it not been for the government and mergers," says Alan Johnson, a leading compensation consultant. "You would expect it to be down much more."

Johnson predicts the average managing director at an investment bank, a title typically earned around eight years on the job, will receive a bonus of $625,000. That's down from nearly $1.1 million last year, but it is still 15 times the income of the average American household. Top bankers could receive as much as $1 million. Even a bond trader just out of business school could see his or her bank account enriched by as much as $170,000 this Christmas.



Redistributing the wealth alright! From the taxpayers to the wealthy!

Highway robbery!



posted on Oct, 27 2008 @ 04:51 PM
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It is just business as usual. Nothing will ever change because enough people have not had enough yet and probably never will.

Think about whether your representative or senator deserve to be in office again on Nov 4th.



posted on Oct, 27 2008 @ 05:15 PM
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reply to post by roadgravel
 


Nope, I don't think any of them have done enough or have been looking out enough for "the people's" best interests!

Voting against EVERY incumbent I can!

That's about the only way I feel I can help get "change"!

[edit on 10/27/2008 by Keyhole]



posted on Oct, 27 2008 @ 08:13 PM
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Another article to piss "the average Joe" off!

Broken Securities Industry Still Has $20 Billion to Pay Bonuses


Five straight quarters of losses and a 70 percent slide in its stock this year haven't stopped Merrill Lynch & Co. from allocating about $6.7 billion to pay bonuses.

Goldman Sachs Group Inc. and Morgan Stanley, both still on track for profitable years, have set aside about $13 billion for bonuses after three quarters, down 28 percent from a year ago. Even some employees at Lehman Brothers Holdings Inc., which declared the biggest bankruptcy in U.S. history last month, will get the same bonus they received a year ago.
******SKIP******
public outcry over excessive pay and the demise of three of the biggest securities firms won't deter Wall Street from offering year-end rewards to employees on top of their salaries, compensation experts say.

``Critical producers and critical managers will be retained with the same bonus they had last year,'' said Robert Sloan, head of U.S. financial-services recruiting at Egon Zehnder International, a New York-based executive-search firm
******SKIP******
Goldman, the biggest and most profitable Wall Street firm until it opted to become a bank holding company last month, has set aside about $6.85 billion for bonuses, or an average of $210,300 for each employee
******SKIP******
Morgan Stanley, the second-biggest securities firm until it also converted to a bank, has $6.44 billion for bonuses, or $138,700 per person,
******SKIP******
Merrill's Compensation

The money Merrill has set aside for bonuses equates to an average $110,000 for each of its 60,900 people, up from $108,000 a year ago



It just boggles my mind that these people feel justified in taking this money!



At Merrill Lynch, CEO John Thain, 53, received a $15 million bonus when he was hired in December. Peter Kraus, 56, who is leaving after joining Merrill last month as strategy head, may be eligible to collect on a pay package originally valued at $95 million
******SKIP******
A Morgan Stanley investment banker in Europe, speaking on the condition that he wouldn't be identified, said his bonus last year was five times his salary and that he would quit if he didn't get a bonus this year, unless his salary was doubled.



Are there no people who can do these jobs besides the people doing them now?

I would think there are! Fire these people and get some new blood in there!

A person should never believe that nobody else can do their job!

[edit on 10/27/2008 by Keyhole]



posted on Oct, 27 2008 @ 08:18 PM
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Maybe one day instead of us fighting over which candidate is better, we will point out the long winded lines of lies that is spewing out of their mouth.

Promises after promises always seem to turn into lie after lie.



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