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FRAUD & BAD RISK= Money in their pockets!!!

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Anonymous

Guest
Bank CEOs Made Billions Before Crash

Friday, September 26, 2008 12:53 PM

As the backlash builds around the country to the proposed $700 billion bailout of Wall Street, a shocking new figure is making headlines.


It turns out that the five biggest investment banks gave their top execs more than $3.1 billion over the last five years alone, doubling their pay even as those executives made the decisions that landed the country in this huge mess.


From Bloomberg News, here's a couple of highlights: Merrill Lynch paid $172 million to former CEO Stan O'Neal. It paid another $86 million to CEO John Thain, for a month's work, before Bank of America bought the firm.


And Bear Stearns managed to give $161 million to CEO Jimmy Cayne before it was taken over by the government.


Treasury Secretary Henry Paulson, the architect of the current bailout plan, got $111 million between 2003 and 2006. He was CEO of Goldman Sachs before coming to Washington.


Lots of money, but a much larger pile of cash went into bonus pools handed out to high-perfoming employees, according to Bloomberg's analysis.


For instance, Goldman, Morgan Stanley, Merrill, Lehman Brothers, and Bear Stearns gave their 185,687 employees $66 billion in 2007, of which $39 billion was in bonuses.


One possibility is a "clawback" provision that could force executives to return money made in the past, if it is determined that the bonuses were linked to troubled assets the government must now take over.


The Christian Science Monitor reported that language in one draft of the deal under discussion now would take back bonuses based on "earnings, gains, or other criteria that are later proved to be inaccurate; limits on incentives based on risks deemed 'inappropriate or excessive;' and limits on severance compensation to senior executives 'in the public interest.' "


"I don't want the federal taxpayer to be at risk for their bad debt, and then the guy who incurred the debt gets tens of millions of dollars on the way out the door," Rep. Barney Frank, chairman of the House Financial Services panel, said on Face the Nation this week.

http://moneynews.newsmax.com/streettalk/ceos_made_billions/2008/09/26/134746.html
 

aplusmnt

Well-known member
I would not be quoting Barney Franks on any of this!

That being said, I hope there is some sort of legal accountability for some of this mess. Hopefully some of them higher ups did something illegal and can be prosecuted and serve jail time. But most likely they were operating legally and just manipulating the system that was put in place for high risk people to get loans.
 
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Anonymous

Guest
WaMu Gives New CEO Mega Payout as Bank Fails
Friday, September 26, 2008


Nice work — if you can get fired from it.

That's just what one Alan H. Fishman might have thought when he woke up Friday morning.

Fishman was the new chief executive officer for Washingon Mutual — WaMu — the nation's largest savings and loan, which was taken over Thursday night by federal bank regulators and quickly dumped in a fire sale to JPMorgan Chase for the Wal-Mart-like price of $1.9 billion.

But don't cry for Fishman, who reportedly was sky-high — literally — last night, on a flight from New York to Seattle, when WaMu collapsed. Even though he's only been on the job for less than three weeks, he's bailing out with parachute worth close to $20 million, according to an executive compensation analysis conducted for the New York Times by James F. Reda Associates.

That's right, $20 million for 17 days on the job ... and his company failed.

http://www.foxnews.com/story/0,2933,428641,00.html
 

TSR

Well-known member
Oldtimer said:
WaMu Gives New CEO Mega Payout as Bank Fails
Friday, September 26, 2008


Nice work — if you can get fired from it.

That's just what one Alan H. Fishman might have thought when he woke up Friday morning.

Fishman was the new chief executive officer for Washingon Mutual — WaMu — the nation's largest savings and loan, which was taken over Thursday night by federal bank regulators and quickly dumped in a fire sale to JPMorgan Chase for the Wal-Mart-like price of $1.9 billion.

But don't cry for Fishman, who reportedly was sky-high — literally — last night, on a flight from New York to Seattle, when WaMu collapsed. Even though he's only been on the job for less than three weeks, he's bailing out with parachute worth close to $20 million, according to an executive compensation analysis conducted for the New York Times by James F. Reda Associates.

That's right, $20 million for 17 days on the job ... and his company failed.

http://www.foxnews.com/story/0,2933,428641,00.html

And I'll say it again. People gripe about workers forming/joining a union to try and better themselves. :???: :???:
 
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Anonymous

Guest
● It seemed like Congress might have agreed on the $700 million bailout. Then it turned out they hadn't. Think of Wall Street as a no-good brother in law who borrowed $500 from you and shows up with a new Jet Ski. ~Jimmy Kimmel
 

TexasBred

Well-known member
OT...I'm not familar with any "clawback provision" but hope it exists. Don't really see how the feds can dictate salaries for public owned companies. At best they might try to find gross improprieties, get a convinction and some of the money returned in the form of a huge fine. (This is partly what they've done with the guy from FNMA). Now once they accept federal monies as part of any assistance program they probably could set salaries.
 
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Anonymous

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