Banks Use Life Insurance To Pay Bonuses

Wall Street Journal:

Banks are using a little-known tactic to help pay bonuses, deferred pay and pensions they owe executives: They're holding life-insurance policies on hundreds of thousands of their workers, with themselves as the beneficiaries.

Read the whole story: Wall Street Journal

Comments

[BobEvansZombie]

Democracy, free-market capitalism, you can be successful if you work hard and live within your means.

America: Land of Blowing Smoke Up Your A ss.

[jebamoni4]

BOA SHOULD BE NATIONALIZIED!!!!!

[AlexNYC]

What an creepy and immoral tactic. It should be against the law to take a life insurance policy on anybody without their knowledge and consent.

[monkeysuit]

I agree with that. This is very disturbing and I was disgusted the first time I read it. This is out of bounds in any type of game.



Monkeysuit
http://randompoliticalthoughtsandnews.blogspot.com/

[Dialogue]

A restricted form of socialism: The collective efforts of employees that generate and maintain a companies revenues, is used to provide individuals with Executive Titles generous bonuses. Non-executive staff are lectured on a "personal responsibility" mantra, that of living within their means on the companies highly conservative employee pay check system, how quaint.

[Suzanne525]

COLI & BOLI are cousins of E-COLI and just as toxic.

[TheBlackCat]

I really wonder what it's like to go through life looking at every single situation you ever encounter with the mindset of, "Now how can I make money off of this?"

[PaleMail]

Better yet. "Now how can I made money off of this and incorporate tax loopholes at the same time".

[chicago25624]

Oldbarry is really kickingasshuh? WAFJ

[Slick88]

Yea - like he's responcible for this too. Get real.

[chicago25624]

They are smarter than barryandtheboys andprove it everyday

[pewty]

No , Obama didnt come to the WH knowing EVERYTHING these sleazebags do. But of course hes been in office so long he should have fixed the decades old problem in a week or two. Di.kweed.

[Dialogue]

Executives reap bonuses on the collective efforts of employees within a company, while non-executive staff are expected to rely solely on their salaries, under a "personal responsibility" mantra, how quaint. THE OBSERVATION: Within a company, Executives participate in a restricted form of socialism, but why restrict it! Why expect non-executives to follow the "personal responsibility" route, after-all, the employees efforts made it possible to generate and maintain the revenues the company receives. Rewarding employees with bonuses for their many contributions makes sense, but restricting bonuses to only those with Executive Titles is a form of socialism. So, "free market" executives fight employee socialism at every level, but gladly accept it for themselves, how quaint.

[BPCentrisAmerican]

There's no free market in the corporate world, that's a bumper sticker for the goobers, just like fiscal restraint. I love the why the GOP thinks under W. they lost there way, excuse me who was the last president to double the budget, was it St. Ronnie, not the patron saint of all that is conservative and good, not St. Ronnie. The irony being the only GOP President who tried to get a handle on the budget was W.'s old man, and he got kicked to the curve for it by Republicans.

[wgsalter]

Clearly you've never worked in one of these Wall St firms. Bonuses go to ALL exempt (meaning salaried, rather than hourly) wage-earners, including secretaries.

[quindy]

Corporate welfare is the core of capitalism.

[eposter]

Give extra stuff to an executive it is called capitalism. Give the same thing to workers it's called socialism.

[WindySailor]

Let's just go ahead and nationalize the banks post haste, fire all of the executives and boards of directors, and sell what's left on eBay.

[chicago25624]

And then we can take over the drug companies, and after that the grocers, and after that we will be just like thecommunists that failed you model your life after

[WindySailor]

Drinking this morning so early?

[Dale Lanan]

This is a loophole that should be repaired not so much by Congress as by a reinterpretation by the Supreme Court of the idea that corporations have the same rights as individuals.. Executives profiting from employee life insurance plans crosses the boundary between what is flesh and blood and holds a soul and the cold,hard, calculating world of corporations which in reality couldn't give a flying hoot about things like global warming because they have nothing to lose. It's a boundary as clear as the need to maintain the separation of church and state if we want to keep our democracy strong. It's a boundary we can reestablish by choosing who gets to sit on our Supreme Court with wisdom and care.

[wgsalter]

This is incoherent. Do you really think it's inappropriate for companies to insure their buildings against fire, flood, theft? No, then why not - with their employee's consent - insure their most important asset, the people that work for them?
And if you really don't believe that legal entities should NOT have standing, that means that the ACLU and the Natural Resources Defense Council and ACORN have no place in a court of law. Is that what you want?

[Give Peace A Chance]

Heck of a business model. Setup a business, hire the sickest people you can find and get a life insurance policy on them.

[Malkin71]

WE ARE ALL MORONS.

How can we live in a society where other people get to place bets on your life?

Walmart, as one example, has been doing this for years. They find out which of their employees are unhealthy and then they take out life insurance policies on cashiers and stock clerks and then make money when they die....without health insurance.

[fifty8]

WE ARE ALL MORONS.

How can we live in a society where other people get to place bets on your life?



Your answer came before your question.

[wgsalter]

An outright lie.

[allieq]

They can get away from this because all that happens is a news article comes out..people read it...and then get outraged...and then decide to comment online rather than get out in the community and protest and cause an uproar. We just let our gov't get away with everything and anything..I've started being a lot more active in my local political community because I don't know what else to do. But I know just sitting here making snarky comments and trying to out smarta$$ each other isn't going to get us anywhere.

[littlewitch]

maybe the US government should have taken out insurance on all the citizens instead of giving the money to the banks.

Heck of a way to fund social security.

[NWRICK]

New main.
Still about money, but not banks.
Step in the right direction at least.