Federal Report Faults Banks on Huge Bonuses

Federal Report Faults Banks on Huge Bonuses

www.nytimes.com

With the financial system on the verge of collapse in late 2008, a group of troubled banks doled out more than $2 billion in bonuses and other payments to their highest earners. Now, the federal authority on banker pay says that nearly 80 percent of that sum was unmerited.

In a report to be released on Friday, Kenneth R. Feinberg, the Obama administration’s special master for executive compensation, is expected to name 17 financial companies that made questionable payouts totaling $1.58 bill

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***Disclaimer: This is an article from the NYT, so please keep that in mind when gleaming any information. I personally find that the NYT is just the propaganda wing of the government.

So that's it? A supposedly nasty report? What are they going to do, roll it up and poke them in the eye with it? Sadly, many people will see this "negative report" as the Obama administration actually doing something about what had happened, when it's not even close.

Who cares about this report, or about what Feinberg asks these banks to do, unless they are actually held accountable, we are only going to continue to be hosed.

Of course, I'm under no illusion that the Obama admin actually wants to do anything about Wall St. raping the American public, but it does make me angry that they are pretending like they are doing something.

--airspoon

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

[edit on 23-7-2010 by airspoon]

They've actually done quite a lot to curb the outrageous bonuses and claw back the money doled out to the banks in 2008. Most of the major banks have repaid TARP and paid hefty fees for borrowing the money. The ones that haven't paid it back yet could still be profitable for the Treasury through the warrants they hold (Citibank, etc). It's at least a 180 turnaround from the original plan of putting no conditions on the banks.