Critics on left cry foul as Obama says he doesn't 'begrudge' bankers' big bonu

[vegiegals]

Pres Obama should have something about GREED.



http://www.twincities.com/politics/ci_14381265


Critics on left cry foul as Obama says he doesn't 'begrudge' bankers' big bonuses
By Victoria McGrane
POLITICO
Updated: 02/11/2010 10:17:37 AM CST

A few weeks ago, President Barack Obama was blasting Wall Street bonuses as "obscene" and criticizing recipients as "fat cats who are getting awarded for their failure."

But in an interview with Bloomberg Business Week, Obama made it sound like he doesn't "begrudge" the multi-million dollar bonuses collected by JPMorgan Chase CEO Jamie Dimon or Goldman Sachs CEO Lloyd Blankfein.

Asked directly whether bonus payouts of $17 million to Dimon and $9 million to Blankfein were acceptable, Obama replied by praising both men as "savvy businessmen." He went on to say, "I, like most of the American people, don't begrudge people success or wealth. That is part of the free- market system."

Recognizing how damaging the comments could be, the White House press team launched a full-fledged pushback, saying that Bloomberg took the remarks out of context. They also posted an entry on the White House blog to clarify the remarks, saying Obama doesn't agree with the big bonuses and has been saying the same thing dating back to the 2008 campaign.

But Obama's comments have angered activists and policy experts on the left who say Dimon or Blankfein are the kinds of Wall Street bankers who helped bring the financial system to its knees with risky practices - the very kinds of people Obama has targeted in his recent anti-bonus comments. ......................

[Sebastian Doyle]

1. Al Capone and Tony Soprano were "savvy businessmen" too

Except they didn't have members of their crime families directly employed in the US government.

[wtmusic]

2. I say let them make as much as they want. The more the merrier.

Then tax the living sh*t out of them.

[Wardoc]

6. You really think you'll be able to get it back from them? They have tricks and lawyers...

...not to mention, allies at the highest levels it seems.

[wtmusic]

8. Of course. you have to watch them like hawks

and close the loopholes.

I remember when the top tax rate was 70%, now it's closer to half of that. And people wonder why we have budget problems.

[AndrewP]

3. He just doesn't want to trigger a backlash from big money special interests

that can now legally pour millions and millions of dollars against any potential re-election campaign of his.

Thanks Supreme Court!

[RUMMYisFROSTED]

4. "Some people say."

:think:

[sui generis]

5. Pardon me, but that's retarded.

I mean, decrying it.

If I hire someone and promise to pay them a fixed amount on contract and in their statement of work, I AM OBLIGATED TO PAY THAT CONTRACT, without reference to how it makes anyone feel or even whether they agree or believe I should pay it. It's the law at that point.

Do I think it's right that some golf-playing escort banging martini swilling Harvard MBA schmo gets a multimillion dollar bonus for the 300 hours of actual work he may have done? Absolutely he does not deserve that bonus, but the obligation to pay it stands. And that IS the same law that ensures you get paid for your work at your job whether you are a saint or a slacker.

For future employees I might get a little smarter and have some kind of performance criteria or sunset and make these people re-sign their compensation agreements, but for the paper that's already signed, it's not even up for debate.

That's the law - we can't make it apply whenever and however makes us feel good. The mistake isn't contract law, the mistake is what these people agreed to and notarized.

[4 t 4]

13. I thought a bonus was a gift not part of a contract ? nt

[sui generis]

18. Nope, bonuses are contractual.

If you pay taxes on it then it's income and income must be stipulated.

Here's an example of a dumb bonus:

If Employee X is a C-Level executive and has served in position for 12 consecutive months, he is eligible for a minimum additional annual bonus at a rate of 20% of his base salary, yadda yadda.



Here's an example of a smarter bonus:

Employee X may have a bonus calculated based on corporate revenue exceeding $$_____, AND personal revenue recognition of $$______ from measurable business development and operations contribution as well as a .023 percent (or whatever) of the net increase in market cap over the same period, payable only at the discretion of the board of directors. In no way does any part of this agreement constitute a guarantee that a bonus will be paid.

Etc.

[bvar22]

14. Do you feel the same way about...

Union Labor?
Are their contracts sacred too?

[sui generis]

16. contracts are sacred

what part did we miss?

[bvar22]

19. The part where you voiced your opposition...

...when Obama endorsed the "Cadillac Tax" on Union negotiated Health Care plans, and used his Bully Pulpit to lobby FOR them.

OR

The part where your criticized the White House for a blatant double standard when they Bailed out the Wall Street Banks No Strings Attached, but demanded contract concessions from Organized Labor BEFORE helping the Auto Industry.

Maybe I just missed that part? :shrug:

[sui generis]

21. I think you misread that

or else I was not referring to the labor agreements in whatever point I was trying to make.

I really do try to be consistently fair - my problem with the "cadillac tax" was the idea that it should only have been a windfall tax on the insurance companies, not the subscribers who benefit from those policies. An insurance policy is used when you need it - income is taxed when you earn it, regardless of how much it's valued as part of one's compensation.

I really don't remember the tie in to contract concessions in organized labor - do you have the link? I don't think it was what you're implying though.

Anyway - a signed contract and future structures of contracts are two different things. The lesson learned is if compensation is in a contract for anything other than base pay, it should be characterizable as something you can pay your house payment with or else incentivized based on merit or some other performance criteria.

So if the "old" contracts didn't have any conditions on those bonuses or any language making it otherwise discretionary, then it's owed in trade, even if the "trade" isn't fair or merited.

I really am on our side - but very cool that you remembered my opinions too. Thanks!

[gcomeau]

7. BULL. SHIT.

He said he doesn't begrudge people wealth but that the bonus structure on Wall Street couldn't be justified by performance.

That's the almost word for word fucking quote.

And what do we get from the media? Drop the second sentence! Obama's fine with Bank bonuses! Everyone freak out!!!!

[MisterP]

9. think he'll mention "God's work" next time? nt

[SteveM]

10. I thought a lot more people than "The Left" (TM) are crying foul. nt

[chasmj]

11. Yeah, only leftists hate banker bonuses...

[blindpig]

12. Ya dance with who brung ya

one hand washes the other

[CBR]

15. I am not crying foul because I read what he said. nt

[RockaFowler]

17. I love knee-jerk reactions

I wish people (including the supposed Liberal Media) would read what he actually said. I love people who are spoon-fed stuff and regurgitate it back up like it's the truth. Learn to read for yourselves people. I always remember an old teacher of mine used to say - Believe Half of what you See and NONE of what you Hear.

[bvar22]

20. Obama couldn't help it.

Its the "Free Market". :shrug:

I would laugh, but his latest performance sanctifying the "Free Market" wasn't funny.

Only successful baseball players knock down that kind of money.

In a REAL "Free Market", FAILED Wall Street Bankers would receive the same bonuses as FAILED Ball Players = "Would you like some fries with that?"

"When given the choice between a Republican, and a Democrat who acts like a Republican, the voters will choose the Republican every time." ---Harry Truman

QED Massachusetts

[KoKo]

22. It's all very disturbing...feel like we got a "bait and switch" ...

:shrug:

[branders seine]

23. Sadly, I'm beginning to think he says

whatever his advisors tell him the person or group he's talking to wants to hear.

During the campaign, I didn't agree with him on everything, but I rated his credibility very highly. Sheesh. Not anymore.

[NecklyTyler]

24. This tells a tail about the Main Steam Media

The M$M throws out a story that is carefully formated to start arguments over Presidential sound bites. What completely escapes in the story is that the Wall Street Bankers are collecting millions of dollars in rewards for financial failure.

Who cares what the President said, it is the fat-cat bankers and CEOs who should be the focus of the discussion!