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

[dagdavid]

With a thumbs up from Geithner

[ThunderclapNewman]

Where's your proof?

[BPCentrisAmerican]

There's no proof, wing nuts just make stuff up. I'm not crazy about the Fed, but to make stuff up isn't adding to the debate, this is the why intelligent conservatives are leaving the GOP. A new poll is showing that the GOP is bleeding membership in every group, except uneducated white church goers, the suckers who think Rush gives a dam about them.

[NYC123]

I am sure these bankers are not calling the compensation "bonus comp!" This is where the government has to step in and fire, the lawyers an CEO for not understanding the "spirit of a cap on compensation especially after putting the country in a tsunami of a recession!"

[windchimes]

There seems to be no moral compass in the people who are in charge of our financial future. Look at the mess they have made and realize these people actually procreated. I can't imagine what we'll be up against as their children rise to the top thru connections, fully tutored in the idea that everything should be slaughtered for their financial gain.

[BPCentrisAmerican]

Will this aholes ever get it, there excuse is the retain top talent, yet there's top talent on the street, I know of a investment specialist VP level, who was doing commercial real-estate for Lehman Brothers, she has be out of work since October. Is it me, or is there a shortage of incompetent CEOs in the US?

[MaxBob]

Accorrding to news reports, the new CC bill will allow CC Co's to assess interest IMMEDIATELY upon purchase. No more 30 day window to pay the balance before being charged interest. This could be BAD for all that use credit cards.

[Jude55807]

Obama loves it, he leads, right?

[zizyphus]

Good reason for people to pay cash, or do without. CC should only be used in emergencies.

[donttasemebro]

don't use credit cards

[WhatDaBleep]

WASHINGTON (Reuters) – The U.S. Army paid "tens of millions of dollars in bonuses" to KBR Inc, its biggest contractor in Iraq, even after it concluded the firm's electrical work had put U.S. soldiers at risk, according to a source close to a U.S. congressional investigation.

The Senate Democratic Policy Committee plans to hold a hearing on Wednesday to examine KBR's operations in Iraq, and question why the Army rewarded the Houston-based company.

The panel says KBR has been linked to at least two, and as many as five, electrocution deaths of U.S. soldiers and contractors in Iraq due to "shoddy work."

Investigators believe hundreds of other soldiers may have received electrical shocks, the source added. The Army is investigating.

The company denies responsibility for any of the electrocutions, saying it is proud of its work and that its employees make great sacrifices to get the job done.

KBR was part of Halliburton Co until two years ago. Former Vice President Dick Cheney served as Halliburton's chief executive from 1995 to 2000, when he became George Bush's running mate.

[zizyphus]

KBR hired guys to do the wiring that weren't electricians.

[rampage]

AP - Authorities nationwide are on the lookout for a mother and her 13-year-old cancer-stricken son who fled after refusing the chemotherapy that doctors say could save the boy's life.
-------->>>>>>>>
This would make a much more interesting topic in my opinion.

[BalletMom]

Batshitcrazy that family is.

I knew that they'd dash as soon as I heard the judges orders.

[rampage]

Yup

[Sureyouare]

What happened to the argument "you can't tell a person (woman) what she can and cannot do with their body"?

[MCMetalForever]

That kid isn't part of her body any longer ...............I'm glad I could point that out to you

[BalletMom]

The 13 year old is developmentally delayed, can't read and does not have the capacity to understand the situation and the so-called *religion* is rife with charlatans.

Grow up.

[Joeblue]

Is the boy part of her body?

[Sureyouare]

he/she

[MaxBob]

All in all, it's a way to hide money from taxes. Congress has allowed it to occur. The question is, will it continue?

[mountainweb]

The real problem, is paying a bonus for failure of performance regardless of how it is funded. THAT has to stop. Amazing that only management gets a bonus for failure, non-management gets fired!

[wgsalter]

As mentioned in the article, this is neither improper nor illegal. Moreover, they have to get an individual's consent to do it. And , as the article points out, it's prudent - both actuarily and economically. Yes, yes - we mustn't have the banks do anything that actually REDUCES unfunded liabilities and is FINANCIALLY PRUDENT. Gosh, what next - criticizing them for accurate accounting and sensible risk management?

[alexandra hamilton]

Well, they have to get the consent of a SUBORDINATE. That shouldn't be too dificult to achieve.
It is highly improper for a manager to have an financial interest in his employees early demise, if you can't see the issue here, than you can't be helped.

[wgsalter]

The manager has NO financial interest. If John reports to Mary and John dies, Mary doesn't get any money.

[Give Peace A Chance]

Except they are ruining a system which is used to compensate families and businesses for catastrophic loses. Note I write loses, not profits. It is unlikely any of these businesses have more than a handful of employees that can't be easily replaced at little cost. Whereas a family would not be able to replace their parents, ever. And a small farm or business might go bankrupt before than can replace the owner or top executive.

Do the employees have a choice? Can they say no you can't invest in my death and still have a job?

[wgsalter]

Yes, it is all conditioned on employee consent. And some do, some don't. But for those that do, it is an economic nullity - they pay no premoum and receive no benefit. It has NO impact on normal group life that employees are often offered in larger firms, where the employee pays the premium (at a discount) and gets ALL of the benefit.

[me again]

That is one of the slimiest business tactics I have ever seen.....that loophole should be quickly removed by Congress.

[DACC]

Gawd!! Shelby, "I'm using the wrong hair color to cover my gray" is on MJ right now!!

Cover your eyes to save the retinas!!

[MCMetalForever]

Covering one's eyes doesn't stop one from hearing his drivel ..............

[BalletMom]

I choose not to look at that snake. Cannotstandthatman.

[DACC]

co-sign, I place him in the same category as ex Cheney aide Ron Christie.
Christie's presence on my tv calls for an immediate channel-change

[OkayLady]

Vampire Capitalism! I will have my employees..and eat them too!

HA ! ha HA mmwahaHAHAaaaaa!

[BalletMom]

Anyone else confused about why Mika is upset about Spitzer when she sits next to Joe every.single.day.?

[MCMetalForever]

Spitzer isn't the one signing her check ............For now

[rubygreen]

I think she missed her calling - with all the posing she was doing - making faces - "Days Of Our Lives" is calling!

[rampage]

Morning!
Everything OK?
How's the dance competition going?

[BalletMom]

Recital time!

We're doing ok -hard to live on 66 2/3 of one's wages though. ;) We lose our health insurance, er um switch to COBRA in a couple weeks - and will probably have to make at least one month payment of that, since it looks like the kid has Plica Syndrome and needs her knee scoped and possible surgery. Yup, when it rains - it POURS.

Good chance I'll have to get a real job - COBRA @ 1400 a month isn't going to go well around here. ;)

[NYC123]

I think Joe acts like a teenager showing off in front of the girl he has a crush on! It's so obvious, I have to turn the channel. It seens Mika plays into the whole skit; for the duet, Mika does a "lap dance" to Joe's child like jerkiness!" I would not be surprise if Mika's dad has already spoken to her about it!

[DACC]

this story is about as interesting as percentages say parents of daughters tend to be liberal

What?????????