Bonuses - this is bull

[Ron]

According to a report from financial news agency Bloomberg, Goldman Sachs, for example, has set aside $6.8 billion for bonuses, and Morgan Stanley, $6.4 billion.

And the chairman of the House Financial Services Committee, Massachusetts Democrat Barney Frank, isn't happy. "These are people who lost enormous amounts of money," Frank observes. "How do you give a bonus to someone for having failed so badly as many of these people did?"

What's got many on Main Street and Capitol Hill angry, David says, is the possibility that some of the $700 billion government bailout package could go into the pockets of Wall Streeters to pay their bonuses.

"All of the money is to go into new loans," Frank points out. "None of it is to go into compensation of any kind for the employees."

==========================

I love it... all the money is going to new loans.

Hell, if someone was giving me money, I would use all that money to 'new' loans, and all the money I had to give people bonuses.

Are people really that stupid? Someone needs to fire and get rid of Frank, who stopped the reform of Fannie Mae years ago already!

[Dos Equis]

 

[Hedgehog]

I'm reading this, while knowing that Henry Paulson is a former executive of Goldman Sachs.
Un-fcuking-believable.
Bush sure is a master at recruiting.  

[Fury]

I'm reading this, while knowing that Henry Paulson is a former executive of Goldman Sachs.
Un-fcuking-believable.
Bush sure is a master at recruiting. 

Goldman avoided most of the credit crunch thanks to their employees and executives seeing the housing bust coming ahead of time. They're suffering because of the irrationality of investors, not because they're another Lehman Bros.

[Dan-O]

What would those greedy bastards do without their bonuses?  Goldman Sachs' Christmas bonuses are already the stuff of legend.  Except now the taxpayers will be the ones paying them.  I don't know about you but I just wouldn't feel right ruining their Christmas by taking that away from them.

This is unbelievably audacious but not at all surprising.  Bastards...  oh wait, I already said that, didn't I.  Oh well.

[Hedgehog]

Goldman avoided most of the credit crunch thanks to their employees and executives seeing the housing bust coming ahead of time. They're suffering because of the irrationality of investors, not because they're another Lehman Bros.

I see your point. GS has a more sound corp culture than most, that's what saved them. Agree.
But it's mindblowing that when the government steps in that they don't put an end to the short term bonus programs that are in place in these banks.
Short term bonus programs rewards high risks and feeds an unhealthy corp culture.
If they let the banks keep the risk levels, it sends out the message: 'risk it all, if you get filthy rich you get to keep it all, if you lose it, we'll bail you out again'.   

[PANDAEMONIUM]

Fuccking horseshit.

[Straw Man]

This entire bailout stinks to hell

It's looking more and more like it's one last chance to pull off a big heist while the criminal in chief is still around

[Buffgeek]

This entire bailout stinks to hell

It's looking more and more like it's one last chance to pull off a big heist while the criminal in chief is still around

Chris Dodd and Barney frank are some of the biggest Jokes in Washington. I dont understand how these geniouses even get elected........

[Fury]

I see your point. GS has a more sound corp culture than most, that's what saved them. Agree.
But it's mindblowing that when the government steps in that they don't put an end to the short term bonus programs that are in place in these banks.
Short term bonus programs rewards high risks and feeds an unhealthy corp culture.
If they let the banks keep the risk levels, it sends out the message: 'risk it all, if you get filthy rich you get to keep it all, if you lose it, we'll bail you out again'.   

Yeah, but I don't think it's right to penalize the lower level analysts and others doing the grunt work. Those guys live on their bonuses, which usually equal 75%-100%+ of their base salaries (which are usually around 50-60k). Shouldn't punish them for working 100+ hours a week while investors panicked and viewed the company as fragile as Lehman.

[shootfighter1]

Barney Frank needs to go!!

[Le4rner]

700 billion...  You guys are behind, it is up to 5 trillion now.  It was a rolling 700 billion.  When I posted something about this very thing happening someone told me about how I was wrong and the Dutch Govt making it work. 

Plain and simple, THe federal reserve is NOT a branch of the Govt.  It is a private bank that has its own private stock.  Alan Green span just recently admitted there is no checks or balance for "The Fed".

The federal reserve act of 1913 is what led to taxes and federal debt.  Prior to that the govt printed money for free and did not have the economic policies dictated to it.  The act was passed on a technicality as there were only a few congressmen present to vote at the time.
 
Before 1913 there was no such thing as income tax.  No need, the govt wasn't in debt.  Every dollar printed is a loan the the country.  What more, the interest is never printed. Before you argue, look into it.  It is documented.  Andrew Jackson killed a similar bank and paid off the national debt.  It took generation before anyone could get a central bank stood up again. 

Fractional reserve banking makes people at the top(in the banks) filthy rich and us poorer and poorer. 

[Hedgehog]

Yeah, but I don't think it's right to penalize the lower level analysts and others doing the grunt work. Those guys live on their bonuses, which usually equal 75%-100%+ of their base salaries (which are usually around 50-60k). Shouldn't punish them for working 100+ hours a week while investors panicked and viewed the company as fragile as Lehman.

They need to revamp the wages then. You can't award risk taking like in the past.
Raise their base salary or something.
But don't reward the risk taking culture.
That's what has got us here in the first place.
People getting awarded for taking risks whether it is a high mortgage, a risky credit card or billions worth of someone else's stocks.
The risk and reward culture is strong and we're paying dearly.
I saw that Canadian banks are in pretty good shape.
A few years ago those banks were pissed because the authorities wouldn't allow them to merge and get aggressive on the investment banking scene.
That probably saved their asses.     

[MRDUMPLING]

700 billion...  You guys are behind, it is up to 5 trillion now.  It was a rolling 700 billion.  When I posted something about this very thing happening someone told me about how I was wrong and the Dutch Govt making it work. 

Plain and simple, THe federal reserve is NOT a branch of the Govt.  It is a private bank that has its own private stock.  Alan Green span just recently admitted there is no checks or balance for "The Fed".

The federal reserve act of 1913 is what led to taxes and federal debt.  Prior to that the govt printed money for free and did not have the economic policies dictated to it.  The act was passed on a technicality as there were only a few congressmen present to vote at the time.
 
Before 1913 there was no such thing as income tax.  No need, the govt wasn't in debt.  Every dollar printed is a loan the the country.  What more, the interest is never printed. Before you argue, look into it.  It is documented.  Andrew Jackson killed a similar bank and paid off the national debt.  It took generation before anyone could get a central bank stood up again. 

Fractional reserve banking makes people at the top(in the banks) filthy rich and us poorer and poorer. 

AMEN!!!  Said in a truthful manner too.  Shame people just call this a "conspiracy".  It won't be too much longer when our income taxes can no longer pay the INTEREST our debt to the Federal Reserve either.  Then our dollar is officially worthless. 

[Hedgehog]

Barney Frank needs to go!!

I thought it was Bush and the Treasury of State who were responsible for the bailout? 

[a_joker10]

I thought it was Bush and the Treasury of State who were responsible for the bailout? 

All money matters go through congress and senate.

Bush can just sign it into law.

That is why it is hilarious that all of this financial mess is being hung on him.
The democrats control the congress.
Congress is responsible for regulating, somehow they forgot to listem to Bush when he said this was going to happen.
Much like they refused to listen to him about their insane energy policy.

Oh well, he gets blamed for everything and no republicans stand up for him.

[Decker]

All money matters go through congress and senate.

Bush can just sign it into law.

That is why it is hilarious that all of this financial mess is being hung on him.
The democrats control the congress.
Congress is responsible for regulating, somehow they forgot to listem to Bush when he said this was going to happen.
Much like they refused to listen to him about their insane energy policy.

Oh well, he gets blamed for everything and no republicans stand up for him.

The Act was proposed by Bush.

[tonymctones]

Yeah, but I don't think it's right to penalize the lower level analysts and others doing the grunt work. Those guys live on their bonuses, which usually equal 75%-100%+ of their base salaries (which are usually around 50-60k). Shouldn't punish them for working 100+ hours a week while investors panicked and viewed the company as fragile as Lehman.

I can understand this and it does suck but what about those ppl whos companies arent getting bailed out and are losing everything? Like you said its not their fault it happend the way it did but its not our fault either so we shouldnt be paying for their shit. Thats what capitalism is you make mistakes you go under.

[a_joker10]

The Act was proposed by Bush.

Congress has the right to do whatever it wanted.

The republicans and conservative democrats didn't like it and voted it down.

The final bill with all of its pork and extra spending is not much at all like the bill the proposed.

[CQ]

Barney Frank needs to go!!

Yes, he is really not cute, and keeping him out of the public eye is really a service to us all

[Decker]

Congress has the right to do whatever it wanted.

The republicans and conservative democrats didn't like it and voted it down.

The final bill with all of its pork and extra spending is not much at all like the bill the proposed.

I thought the only change of consequence (outside of pork) was of the revocation of aboslute unchecked power for the fed in implementing the spending.

[Buffgeek]

Yes, he is really not cute, and keeping him out of the public eye is really a service to us all

LOL!

[Bindare_Dundat]

Don't worry guys, the bailout bill is going to end all this kinda stuff, I bet all of that (unaccounted for)2 TRILLION dollars only went to banks that needed it. So what if Paulson changes his mind on the promises he made to congress, whats the big deal?

These guys know what they're doing and they know that if they ever screw us over, the people will be pissed off enough to get off their asses and doing something about it.......(maybe)   

[tonymctones]

Don't worry guys, the bailout bill is going to end all this kinda stuff, I bet all of that (unaccounted for)2 TRILLION dollars only went to banks that needed it. So what if Paulson changes his mind on the promises he made to congress, whats the big deal?

These guys know what they're doing and they know that if they ever screw us over, the people will be pissed off enough to get off their asses and doing something about it.......(maybe)   

dont worry we have a president who is going to go over the budget and spending line by line 

[Bindare_Dundat]

The application for a bailout request is only 2 pages. hahahaha Billions of dollars and only have to fill out 2 pages. hahahaha