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

[Annieke]

It seems that the greed of these executives has no boundaries.

If I were an American consumer with an American account, I would withdraw all my money right away and find another small bank that does not prey on the deaths of their employees.

If I were the FBI, I would investigate ANY death of a bank-employee and withhold all payment for the moment. That would teach the Wall Street greeds.

[Coyote2]

Try a Credit Union.

"If I were the FBI" ............................ha ha ha .....If I were the FBI, I would miss anything _9_1_1.

~
Incompetent dolts or conspirators?

[watchTVgetSTUPID]

What is scary is all these very powerful people immune from ordinary prosecution have set up a system where they are incentivised if lots of elderly die off. It would be diferent if they had morals.

[Xavieer]

You should Phone Phil Gramm and USB.............deth and money swiss and swass....

[uberliberal]

Phone USB? You mean like the Magic Jack?

[watchTVgetSTUPID]

Wall Street Banksters are hoping the Swine Flu lets them cash in this coming winter.

[Xavieer]

Hit rock become comatose...........

[MurrayAbraham]

I wouldn't be surprised if someday there will be derivatives betting on the probability of terrorist attacks and pundits on CNBC would use their value on the market as a measure of the authorities security policies.

[NotDuped]

Mmm..

[helen]

The greed knows no bounds... :(

[hidflect]

HP and the WSJ just found out? It's been common practice for about 5 years now. The WSJ calls it "Janitor's insurance". Shame on them... I've never heard that term ever. They (and I) know full well its real name inside the banks is:

"Dead Peasant's Insurance".

[mergina]

What the hell is the Obama Administration doing to control these thieves?

[Xavieer]

http://www.youtube.com/watch?v=fRLfMEv2xyc>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>This is 4 u KQ ......................From another gray headed veteran..........why not pump it up......wat ya got grandpaw???................Off topic of course...........

[KQuark]

Awe yeah. Ya can't fight the funk!

[Xavieer]

Ka choo ka choo yea ka choo ka choo yea yea..........!!

[jinxed]

Look out for mysterious deaths for the workers at these banks! I think if I were an employee I'd worried mainly because the bank executives have proven they have the morals and ethics of pirates.

[Penelope Lim]

This is an excellent example of how hard it's going to be to regulate the banks and Wall St in the current framework of laws. How on earth can you legislate against every twisted idea they come up with? You can legislate all you want, but they'll just keep coming up with more and more immoral ways to make (or steal) money. You'll never keep up with them.

Sadly, the only way would be to spell out exactly what businesses can do. Anything not mentioned would be illegal unless specifically allowed by legislation. Unfortunately, this would be too much like communism, socialism and other dirty words for the majority of the electorate. Hence the unfettered greed that has spawned this mess.

[Overseas-Observer]

Maybe that's just currently the way of our world Penelope. Seems often to be the way in nature too.

Measure > Counter-measure > Measure > Counter-measure > Measure...

Hopefully the learnings we get from this continual process will eventually lead us to a better approach.

As you can tell, I'm the eternal optimist! :-)

[Willow712]

I am amazed at how entitled and desperate these big banks are. They can't give bonuses one way, they certainly are good at finding another way. They need to be regulated, just like a child that needs to be grounded. This is just amazing that they find these ways to give away our money.

[Raster]

Bonuses also have nine lives and banks/Wall Street are showing they know more than one way to skin a cat. All are taxpayers expense, of course.

[ScoreKeepN]

Key wording on the sentence up above:

"to help pay bonuses, deferred pay and pensions they owe executives"

They Owe.

[bibimimi]

Scavengers...pick those bones clean!

[jcole]

i new that those crooks would fleece the American people, and if Mr Geithner is allowing that to happen he should be fired, i have said this man is not working for us, when are we the American people going to wake up and demand that our government put a stop to this madness, unemployment is going up and up and the crooks who robbed the country blind are getting bonus, we own these companies and we can resend those bonus, why want Mr Geithner stop them. these things are done undercover and with the blessing of Mr Geithner.