Pigs at the Trough

[marmar]

via MichaelMoore.com:



July 23rd, 2010 7:47 AM

17 firms issued excessive pay
Official expected to cite practices after bailouts

1 of 1

Boston Globe


With the financial system on the verge of collapse in late 2008, a group of troubled banks doled out more than $2 billion in bonuses and other payments to their highest earners. Now, the federal authority on banker pay says that nearly 80 percent of that sum was unmerited.

In a report to be released today, Kenneth R. Feinberg, the Obama administration’s special master for executive compensation, is expected to name 17 financial companies that made questionable payouts totaling $1.58 billion immediately after accepting billions of dollars of taxpayer aid, according to two government officials with knowledge of his findings who requested anonymity because of the sensitivity of the report.

The group includes Bank of America, Goldman Sachs, JPMorgan Chase, and American International Group as well as small lenders like Boston Private Bank. Feinberg’s report points to companies that he says paid eye-popping amounts or used haphazard criteria for awarding bonuses, people with knowledge of his findings said, and he singles out Citigroup as the biggest offender.

Even so, Feinberg has very limited power to reclaim any money. He can use his status as President Obama’s point man on pay to jawbone the companies into reimbursing the government, but he has no legal authority to claw back excessive payouts.

Bank of America has already come under fire for allowing Merrill Lynch & Co. to quietly dole out $3.6 billion in bonuses, even as it was struggling with mounting losses, shortly after Bank of America agreed to buy it. Spokesman Robert Stickler said Bank of America has had discussions with Feinberg’s office, but declined to discuss any details. Like most major banks, Bank of America has since repaid the government for the US aid it received. ..............(more)

The complete piece is at: http://www.michaelmoore.com/words/latest-news/17-firms-issued-excessive-pay

[lib2DaBone]

1. People forget....

George W. Bush gave the Banks $700 Billion in free money in October 2008.

There were no receipts, no stipulations, no records, no tracking, no goals, no records.

Just a giant fucking give away to the bakers and Republicans. (that you and I are responsible for)

As a matter of fact... they tried to track the money.. and Timmy Geithner and Ben Bernake told them to fuck-off.

NOW.. they want to raise the retirement age to 70, and gut SS benefits.


And America is OK with it! Don't the DEMS ever get tired of taking it in the shorts?

[Daninmo]

2. What's worse

is the house and senate passed all this and put it on the bush's desk for him to sign.

[Hydra]

3. Sure

And it was over our objections.

They even claimed that the public was swayed by the threats of the economy crashing. Not likely- most people recognize broad daylight bank robbery when they see it.

[bvar22]

4. Paulson with Co-Conspirators:

[inna]

5. Obama was a big supporter of the bailout in fall 2008 and worked hard to have it passed.

Moreover, bailouts quietly continue under Obama; in fact $700 billion was given in the past year:




http://www.reuters.com/article/idUSN2010140720100721

US financial system support up $700 bln in past year-watchdog

WASHINGTON, July 21 (Reuters) - Increased housing commitments swelled U.S. taxpayers' total support for the financial system by $700 billion in the past year to around $3.7 trillion, a government watchdog said on Wednesday.

The Special Inspector General for the Troubled Asset Relief Program said the increase was due largely to the government's pledges to supply capital to Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) and to guarantee more mortgages to the support the housing market.

Increased guarantees for loans backed by the Federal Housing Administration, the Government National Mortgage Association and the Veterans administration increased the government's commitments by $512.4 billion alone in the year to June 30, according to the report.

"Indeed, the current outstanding balance of overall Federal support for the nation's financial system...has actually increased more than 23% over the past year, from approximately $3.0 trillion to $3.7 trillion -- the equivalent of a fully deployed TARP program -- largely without congressional action, even as the banking crisis has, by most measures, abated from its most acute phases," the TARP inspector general, Neil Barofsky, wrote in the report.

The total includes Federal Reserve programs and a myriad of asset guarantees, including Federal Deposit Insurance Corp. protection for bank deposits.

The increased government commitments more than offset about a $300 billion decline in the U.S. Treasury's TARP commitments in the past year as programs have closed and banks have repaid taxpayer funds.