Bankers Reaped Lavish Bonuses During Bailouts

Bankers Reaped Lavish Bonuses During Bailouts

www.nytimes.com

In January, President Obama called financial institutions “shameful” for giving themselves nearly $20 billion in bonuses as the economy was faltering and the government was spending billions to bail out financial institutions.

On Friday, the House of Representatives may vote on a bill that would order bank regulators to restrict “inappropriate or imprudently risky” pay packages at larger banks.

Mr. Cuomo, who for months has criticized the companies over pay, said the bonuses were particularly galling because the banks survived the crisis with the government’s support.

“If

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Now, I don't know if the government should 'restrict "inappropriate or imprudently risky” pay packages' once the banks are standing on their own two feet and have paid all the "bailout" money back, but I see nothing wrong with restricting these HUGE "pay packages" until they can afford tp pay their employees WITHOUT using the bailout money that was meant to help save their companies and the US economy!

Mr. Cuomo’s stance — that compensation for every employee in a financial firm should rise and fall in line with the company’s overall results — is not shared on Wall Street, which tends to reward employees based more on their individual performance.

So, apparently, even if the company is losing money, it will still try to pay a "good" employee a huge bonus!

Doesn't sound like a sound business plan to me!

www.nytimes.com
(visit the link for the full news article)

[edit on 8/2/2009 by Keyhole]

Old news... many threads already

Vegas Mayor Goodman already chewed out Obama for saying those bail out companies shouldn't party in Vegas

Hey we just wanted some of that money back