1) right now everyone is pretty much stuck due the the economy, but things change fast
2) the compensation culture at these firms includes bonuses for the rank & file. The house measure with the $250K limit is not as bad (though a 2 professional income family in NYC easily makes more and is not "wealthy") but $50K in bonus is not very much. There are people who get only $50-75K in salary who get $50k in bonus every year. People at another type of firm doing the same staff job probably make $95K all salary. The investment banks draw at all levels using bonuses, not just big-wigs.
3) The mess we are in is pretty narrow when you look at all of an investment banks' businesses. Also, see answer to #2.
4) people in this business get poached for their rolodexes - i.e the folks they do business with regularly and can call up no matter who they work for. Companies not under TARP will take advantage of this change to poach people with large rolodexes
The bonuses are total crap at the top levels. A $500K income test or a $200K bonus limit would pretty much avoid all the rank & file and hit the people who are legitimately involved in the mess. Not sure why congress has tried to set the limits so low unless this is just a convenient money grab with populist support.”
"As this Committee is aware, JPMorgan Chase did not seek the government's investment. But we agreed to support the government's goal of obtaining the participation of all major banks."
Some banks did not want the money, and declined, but were "asked" to participate so that all major banks would be included and there was not the perception of TARP being a commentary on solvency. This is obviously more complicated than you can handle.”
Chase was not bailed out. it was forced to participare in TARP 1. Both Chase & Goldman Sachs tried to refuse the money and were forced to take it.
In addition, both Chase & Goldman Sachs are actively attempting to pay back the TARP money and not participate further.”
jbs902 on Feb 19, 2009 at 10:56:07
“I suppose the Tooth Fairy is going to bring you lots and lots of money also. Forced to participate?
Yes and hell froze over yesterday at 3:00 in the afternoon. They should've taken Nancy Reagans advice then and "JUST SAID NO"”