Don't we all want our voices heard? But this shameful billions of dollars that were deposited in the bank accounts of Wall Street/financial industry types and that came from the backs of the American people just about takes the cake and makes us all want to raise the American roof with our shouts--until they give it back!
Billions of government bailout dollars going the way of financial industry bonuses? It's wrong. We all know it's wrong. But what is any person or regulatory group or government entity going to do about it? From "Few Ways to Recover Bonuses to Bankers" in The New York Times:
"Shameful." "Outrageous." "The height of irresponsibility."
President Obama had some harsh words on Thursday for bankers who paid themselves billions of dollars in bonuses despite the sweeping government rescue of the nation's financial industry. Senator Christopher J. Dodd of Connecticut said "every possible legal means" should be used to claw back the money.But the sober reality, compensation experts said, is that most if not all of the money that the banks have paid out is probably gone for good. The "legal means" Senator Dodd referred to are few. Unless actual wrongdoing is uncovered at the banks -- and so far prosecutors have not disclosed any -- the case for clawing back past pay is weak.
At the very least, we can vent as a community. We can come together in collective discontent to put pressure on the blood-suckers. If you're a member of Facebook, I've just formed a group called Bonus Busters: Make Wall Street Pay It Back! Please join it. If you're not a member, consider becoming one. I don't know if we can squeeze any of the money out of them--shame isn't in their vocabularies--but we can give it a shot. Maybe their kids will take notice. At the very least, we've made a public stand.
These Wall Streeters are supposed to have big balls, right, and to be proud of it? Let's send them a message: If you really want to show what you're made of, then PAY IT BACK!
Cross-posted at www.betharnold.com, where you can also comment.
Had I been in charge of the bailouts, I would have included a clause indicating that any institution that uses bailout money for employee/contractor/consultant bonuses, gifts, conferences at luxury resorts, or salary increases for anyone above the $40K/year income bracket will be penalized. The penalty would likely be a severe tax clawback of all bonuses etc., and the forfeit of further assistance. But that's just me, and no one was asking.
Still, one way or another, something has got to make the average person declare "not on my watch". I say get involved. If your bank gave out bonuses, write to the CEO of your bank. Write to government officials. Overwhelm them with letters, emails, and petitions. All the same, be as constructive as you can (ranting will only make them ignore you. Make your point, and be civil about it.). If you have ideas about how to improve the situation, offer them. And if you happen to actually know someone who received a bonus, respectfully ask that person to consider giving it back. Who knows? Maybe your story, idea or request will make all the difference.
You know the old saying: You can't con an honest man.
Imagine it this way: we loan (investors are loaning their money to the Wall Street boys - loaning THEM the money, so THEY are the borrowers - never forget that) the guy next door some money because he has a pretty good track record with making his money make money. We know there is no guarantee. But one evening the guy beats down the door, sobs in an hysterical panic that he just got back from a trip to the Bahamas, finds out all of a sudden he is broke, has lost all of our money, and demands that we give him a bunch more money so he can replenish his account.
Is there a person here who would just hand over the dough? No questions asked? Or, if asked, not answered? Would we hand over the money and later on send our family and friends a home video of us wagging our finger at the neighbor's house while our spouse is getting ready for the next check-writing party?
Because, to tell the truth, I don't think getting a few hundred or thousand brokers to give back their blood money will change the culture that created this crisis. And it certainly won't reach into the board rooms of the Banks that caused it.
We can castigate these guys as much as we want, and it makes great theater and a cathartic release for our anger. It doesn't fix the problem. And it distracts us from the real criminals at the top. You and all the other investigative bloggers need to attack the corrupt culture of Finance at its roots and work your way up to the guys at the top. Otherwise you're just feeding a lynch mob mentality that will be satisfied when a few of the hired hands bodies swing, declare their work done and go home to a chicken dinner, while the Bosses are still safely ensconced in their Park Avenue penthouses.
Here are a couple of more revolting examples:
http://www.nypost.com/seven/02012009/news/worldnews/citis_sky_high_arrogance_152995.htm
http://www.abcnews.go.com/Blotter/story?id=6782719&page=1
And it appears that the boys at the Bank of Italy--err, America, have no lack of hubris either. The party must go on, especially when you and I and the rest of America are picking up the tab.
A bank should take deposits and make loans. Period. They should by law be required to hold the loans they make. Not gamble with them. They need to be broken up under the anti-monopoly statutes just as sure as if Teddy Roosevelt were President. And the Wall Street banks along with them.
If the SEC had done it's job the number of FRAUDLENT and OVERVALUED loans would not be causing this problem.
AAA PAPER DID NOT MEET THE AAA STANDARD BUT THE SEC NOT CHECKED !!!!!
Think Moody's, Standard and Poor's, and Fitches.
Credibility of these old-timers was part of labeling CRAP as AAA.
Also, how is the SEC supposed to do their job with a raging GOP infection?
Remember, they all are expecting to get more TARP money this year.
If they want more TARP, then they have to get the bonus money back.
And, if they cook the books to make it look like they didn't give out bonus money or claim that they got the money back when they actually didn't; make such a step a crime with huge penalties and jail time.
We might can't get the money back. But we sure as hell don't have to give them another dime.
BITGOD Big Banks forecasted the "Hyper-Housing-Inflation of 2004 to 2006" forward 10 to30 years! Then they added that percentage using FEES to manufacture Derivatives. Banks Sold Derivatives with about 100% markup embedded! The sold Derivative was worth 50% of the price paid.
They skimmed the 100% Markup into Excessive Salaries, $30 to $100 Million Bonuses, and Big Dividends emptying the Banks of that 100% Mark-up. How else could afford the $Million Christmas Bonuses....
Now they want Obama and Taxpayers to double-cover the 100% markup in Salaries, Bonuses, and Dividends already skimmed into the Bankers Pockets. For a 200% total Heist!
To repeat they are asking the "BAD BANK" to pay another 100% on top of the First 100% for a total of 200% to make them WHOLE again! A DOUBLE WIN for these Corrupt Banks and DOUBLE LOSE for the Taxpayer!
Of course, the Banks also want Taxpayers to cover the depreciation on underlying asset of 50%.
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Instead Obama should start a “GOOD Bank of the People” that uses High Tech (like Quicken Loans) to offer services to people and businesses through the Internet at low government Rates and Fees. Keep overhead low with the Internet, ATMs, Debit/Credit cards and NO Branches.
Better, cut their compensation packages to government salary levels.
A young Army Captain, in charge of a full company of fighting men (nearly 200) deployed to Iraq gets a base salary of what? The young Captain, works many more hours than any Wall Street mid-level manager, under far more stressful condition. The risk to his failures are far greater than any Banker anywhere - the lives of his men.
Wall Street and Charlotte bankers produce nothing. Not. One. Thing. Ever.
They are, in reality, moneychangers and dealmakers.
Since we're going to financially support these individuals who exclusively created the mortgages, created the derivatives, and sold them around - (if it looks like a Ponzi and walk like a Ponzi) - don't you think they deserve the pay of the people who we hold in most regard?
Or, do we, as a society, hold the bankers who created this financial disaster in higher regard than the Soldiers, Sailors, Airmen and Marines that work on our behalf to really keep us safe?
Erin Burnett of CNBC may consider this just a "populist" notion. But, the rest of us just consider these non-productive individuals WAY less useful than those of the Armed Forces.
Write your Congressperson to tell them who you value more - individuals in the Armed Forces, or these bankers.
limousines, and other "executive entitlements": cut them off at the knees. Appealing to their
"social conscience" is futile, because they don't have one; government regulation is a farce,
because the Congress people...who write the regulations...are dependent on corporate
funds to assure their re-election.
Stop the useless "bail-outs". Let the banks fail. Start a new, not-for-profit "National Bank of
America," and run it right. And prosecute the Wall Street perpetrators under the RICO statutes.
start a new bank, run it right, and let the dinosaurs fail.
Taxes.
We can TAX certain income categories and amounts.
We can tax BONUSES. We can tax incomes over...$1 million dollars. We can even make different tax brackets for different professions. Just ask....hedge fund managers.
To further realize that the banks that received the bail outs are still using the funds to protect their own "ass"ets instead of making the funds available to the Everyman American citizen is wrong on so many levels.
With all the billions the government is dishing out like penny candy, why don't they take a mere $1 billion & apply that to the nonprofits around the country that are on the ground level dealing with this situation? The food banks are desperately trying to keep up with donations as demand grows daily; the elderly are having to choose between medications and eating or staying warm as basic costs escalate.
Most Americans are proud people and those that have fallen on hard times are simply needing a "hand up" - not a "hand out". If we can be the savior for so many 3rd world countries, why can't we do the same for our own? Our tax money should be going to the local level and NOT to bail out