When confronted about these numbers, the executives will always claim that the bonuses are paid out of other funds and company earnings. This completely ignores the fact that without the taxpayers’ bailout money, there would be no earnings! If there was anyone left who still felt like the bailout was a good idea (besides the executives who directly benefit), this should be the final nail in the coffin that we were just robbed blindly while the politicians patted themselves on the back.
The election results pretty much confirmed the extent to which Main Street is rightly livid about the Wall Street mentality that led to our financial crisis. During his historic victory speech, President-elect Barack Obama told supporters, and the rest of the world, “If this financial crisis taught us anything, it’s that we cannot have a thriving Wall Street while Main Street suffers.”
But, it seems that Wall Street didn’t get that memo. It turns out that the nine banks about to be getting a total equity capital injection of $125 billion, courtesy of Phase I of The Bailout Plan, had reserved $108 billion during the first nine months of 2008 in order to pay for compensation and bonuses (PDF).
Paying Wall Street bonuses was not supposed to be part of the plan. At least that’s how Federal Reserve Chairman Ben Bernanke and Treasury Secretary Hank Paulson explained it to Congress and the American people. So, on Oct. 1, when the Senate, including Obama, approved the $700 billion bailout package, the illusion was that this would magically loosen the credit markets, and with taxpayer-funded relief, banks would first start lending to each other again, and then, to citizens and small businesses. And all would be well.
That didn’t happen. Which is why it’s particularly offensive that the no-strings-attached money is going to line the pockets of Wall Street execs. The country’s top investment bank (which since Sept. 21 calls itself a bank holding company), Goldman Sachs, set aside $11.4 billion during the first nine months of this year — slightly more than the firm’s $10 billion U.S. government gift — to cover bonus payments for its 443 senior partners, who are set to make about $5 million each, and other employees.
Two of those firms, Bear Stearns and Lehman Brothers, went bankrupt this year. Bank of America is acquiring a third, Merrill Lynch. Shares in the remaining two, Morgan Stanley and Goldman Sachs, took a 60 percent nosedive this year.
Yet, that didn’t stop their campaign contribution money from spewing out. Goldman was Obama’s largest corporate campaign contributor, with $874,207. Also in his top 20 were three other recipients of bailout capital: JP Morgan/Chase, Citigroup and Morgan Stanley.
I’m ready for some “Change we can believe in”, but I doubt it will come from those in Washington who are bought and paid for.
- H&R Block Coupon Code 2013 – Save Money On Tax Prep
- Equifax Canada Promotion Code 2013, Coupons, Savings
- Glenn Beck Indoctrinates Donald Duck
- Happy Easter from the Bailout Bunny
- Companies Receiving Bailout Using Offshore Tax Shelters
- Just So You’ll Know….
- Some Other Bailouts That Should Have Been…
- Death of a tax(bailout)?… wait, that’s not how the saying goes…
- Obama hopeful auto bailout deal possible this week
- Thanksgiving in Washington – What a Tasty Looking Turkey…
- Wiping Your Hard Drive Clean - Great Identity Theft Protection
- Using A Shredder To Protect Your Identity
- Identity Theft Of Deceased Persons - An Awful Crime
- Single-use Credit Card Numbers Should Be Used More Often
- Things To Look For In Identity Fraud Protection Services
- What To Do When You Lose Your Wallet
- How To Avoid Identity Theft In Your Business
- What to Do If You Lose Your Social Security Card
- History Of Equifax - Company Owns Your Secrets
- How To Prevent Identity Theft From Happening
- How a High Protein, High Fiber, Low Carb Diet Can Work
- Using a Treadmill Desk For 6 Months
- A Treadmill Desk Walk Through Terre Haute, Indiana
- Virtual Walk Past Farmersburg, Indiana – Treadmill Day 38
- 31 Days Using a Treadmill Desk – Status Report
- How To Start A Weight Loss Program (No Treadmill Needed)
- The Treadmill Desk Revolution Is Spreading – Day 24
- My Vacation (From Treadmill Desk Blogging)
- Using a Treadmill Desk – Day 18
- Treadmill Desk Workstation, Loving It – Day 14