http://blogs.moneycentral.msn.com/topsto...ec-bonuses.aspx


As if the economic bailout by U.S. taxpayers isn't enough to make you sick to your stomach, new information has come to light that several banks are planning to pay billions of dollars in year-end bonuses from the bailout funds they received. Investigations are beginning into the nine banks that took in the first $125 billion -- the same $125 billion that was supposed to be used to unclog the credit system which was preventing banks from providing much needed funds for individuals and businesses.

There are many feathers in a ruffle over this and New York Attorney General Andrew Cuomo and several congressmen are furious that over $20 billion has already been earmarked as bonus funds for management and employees. Unbelievably, that is just the estimates from Goldman Sachs, Morgan Stanley and Merrill Lynch. There are six more banks that are also working on similar heists.

Here is their rationale for using that money: It is reported that the financial industry pays base salaries in the range of $80,000 to $600,000 and apparently that is simply not enough to keep some of the best and brightest working to keep their companies profitable. It seems that if they were paid only this meager amount, the company would risk mass defections. That would be a real problem...or would it?

Maybe it is time to peg annual bonuses to something meaningful like profitability. As I recall, not only are these the firms that have been losing money (as is evident by the need for a massive multi-billion dollar bailout) but they have also been shown to be the creators of securitization, derivatives, sub-prime mortgages and other toxic credit that is the root cause of this historic global economic catastrophe!

Maybe I am being too harsh? Perhaps management is entitled to hundreds of millions in bonuses for the hard work they do, day in and day out. You have to feel sorry for them as most have had to give up their private jets and instead fly in a cramped seat in first class. Surely most will now have to wonder how they will deal with the excess workload as they have had to fire thousands of employees. Also, they will need to use a good chunk of that money to rebuild their retirement plans as much of their wealth was tied up in their company's stock which, under their leadership, could be down more than 60% just this year alone.


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This is why Paulson and Bernanke didnt want any oversight into how the money was allocated. It's just like we thought it was, a big fat payoff for poor performance!
It looks like I wont get an annual bonus this year because my company isn't performing at the levels set by executive management. On Wall Street, the executives must be getting bonused on how much money they bilked from thier investors. This is fuggin ABSOLUTELY ABSURD!

I'm sure all of you who supported the bailout agree this is the right way to appropriate our taxpayers monies.....pfff! And I bet it isn't over yet....

It's not absurd, it's legal robbery.
I still cant figure out how a bankrupt company can write million dollar checks for bonuses.
Who's going to come running to help when I run my business in the toilet---not a soul.

A fitting climax to cap off the last eight years of taxpayer swindles.

Cheney is still CEO of Halliburton. How much profit did they pull in from no bid contracts since 2000? The second he leaves office he gets to receive his 'back-pay.'

From here until January, the paper shredders at the White House will be running 24/7.

What's going on in this country, from immigration to the $ value to gas prices and yes this bailout (and the policies leading up to it) is exactly what the politicians want to happen. Remember we swept the lowlife R's out of Congress for change two years ago. Oh and to get out of Iraq. And now we get to vote for more change. Yea right! But just as long as us peasants are all bitching and moaning and at each others throats the beautiful people running this country are happy......................



I bet your right!

Funny how both Obama and McCain voted for this bailout? And from today's Seattle Times, "The Democratic candidate, Sen. Barack Obama, has said in recent days that he supports increasing aid to the troubled auto companies, while Sen. John McCain has not said whether he would support aid beyond the $25 billion." [ http://seattletimes.nwsource.com/html/nationworld/2008343309_gm030.html ]

We get what we deserve! But at least this way we get to have fun calling each other names while stroking our own ego's.

Here is their rationale for using that money: It is reported that the financial industry pays base salaries in the range of $80,000 to $600,000 and apparently that is simply not enough to keep some of the best and brightest working to keep their companies profitable. It seems that if they were paid only this meager amount, the company would risk mass defections. That would be a real problem...or would it?



So where are they going to go?? Seems to me they have done a poor job and might have a hole in their resume'

I'm a banker, and it looks like I'm not getting my bonus this year, even though my performance has been above average this past year.

Bonuses for me make up 20-30% of my salary, and when you receive bonuses for 6 years running, you start to count on them as part of your annual compensation.

I, for one, am enoamoured with the disicentive package this year at my bank.

Dogfish,

Rent Christmas Vacation.

Enjoy being a member of the Jelly-of-the-month Club.

Andy,

Maybe if you'd lost a few billion for your bank you would be in line for one of those bailout sized bonuses. Don't worry; you're in good company being one of us who didn't understand how the compensation system really works.

Sg

Everything is ok--- they will have to pay taxes on the bonuses.

Good; that will make it all better.

They are greedy, arrogant POS. None of this money should have found it's way into any bank until they could prove that they have cleaned house and implemented policies that guarnteed responsible use of the money. Obviously the knuckle heads in Congress didn't see the folly of dumping our money into what are essentially corrupt corporations. So why should this surprise anyone?

the gift that keeps on giving...the whole year!

China toy co. goes broke, I thought it was boom time for them ? They must have played hard to get with Walmart...

Your point?

China's government provides emergency unemployment relief totalling $500,000 to the working families of a city left destitute and Bushco hands over $300,000,000,000 to billionaires no questions or strings attached?

$500,000 would only buy you a photo op if contributed to Bush's 2004 campaign.

I think his point was that everybody on the planet thinks their govt sucks...but we can prove it!
I do not think out Country sucks, but the management leaves a little to be desired (and that will be true with whichever new Prez we elect today).

classic!