No curbs on Wall Street pay despite meltdown

uscitizen

uscitizen

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No curbs on Wall Street pay despite meltdown

Oct 24, 5:51 PM (ET)

By RACHEL BECK and JOE BEL BRUNO

NEW YORK (AP) - Despite the Wall Street meltdown, the nation's biggest banks are preparing to pay their workers as much as last year or more, including bonuses tied to personal and company performance.

So far this year, nine of the largest U.S. banks, including some that have cut thousands of jobs, have seen total costs for salaries, benefits and bonuses grow by an average of 3 percent from a year ago, according to an Associated Press review.

"Taxpayers have lost their life savings, and now they are being asked to bail out corporations," New York Attorney General Andrew Cuomo said of the AP findings. "It's adding insult to injury to continue to pay outsized bonuses and exorbitant compensation."

Banks will decide what to pay out in bonuses in the coming months. Just because they've been accruing money for incentive pay doesn't mean they will pay it out in full.

That there is a rise in pay, or at least not a pronounced dropoff, from 2007 is surprising because many of the same companies were doing some of their best business ever, at least in the first half of last year. In 2008, each quarter has been weaker than the last.

"There are, of course, expectations that the payouts should be going down," David Schmidt, a senior compensation consultant at James F. Reda & Associates. "But we haven't seen that show up yet."

Some banks are setting aside large amounts. At Citigroup, which has cut 23,000 jobs this year amid the crisis, pay expenses for the first nine months of this year came to $25.9 billion, 4 percent more than the same period last year.

http://apnews.myway.com/article/20081024/D94148CO0.html
 
Why would they? The f**king government bails them out when they fail.

It's like rewarding a child who gets all "F's" in school by taking him to Chuck E. Cheese and letting him play unlimited ski-ball.
 
ironhead said:
Why would they? The f**king government bails them out when they fail.

It's like rewarding a child who gets all "F's" in school by taking him to Chuck E. Cheese and letting him play unlimited ski-ball.
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You're plan is like getting us into another great depression because you literally believe every word of what someone who had little understanding of the economy wrote 200 years ago.
 
Watermark said:
You're plan is like getting us into another great depression because you literally believe every word of what someone who had little understanding of the economy wrote 200 years ago.
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Please...

Do you even know what our economy will look like when the dollar is worth nothing? The more we print out of thin air, the less it is worth. And, for fuck's sake, don't say the value of the dollar has gone up recently just because other currencies have begun deflating.

Why don't you read about how Hoover expanded credit, imposed regulations, banned short-selling, and other measures which prolonged and worsened the depression. The market needs to correct itself, liquidate bad debt, some companies might go under or cut jobs (actually, this is happening WITH the bailout). Housing prices might fall - they were already drastically inflated. Once these things occur - investment will begin again. It might look ugly for a year or so, but I'd much rather have that for a year than for ten.

Even worse though, is the fact that we continue to wage massive wars/occupations on credit/borrowed money. This is simply malinvestment of money, which could be otherwise put to productive economic purposes.

You put these bailout/warfare state policies together, and you're really headed for economic meltdown.
 
first no one cared as CEOs fucked shareholders. Now they are fuucking the tax payer in the ass without the common curtesy of a reach around and few care.
 
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