Posted on 02/10/2009 7:16:22 AM PST by Gondring
Funny how, after all the commotion about capping compensation on Wall Street, the argument against curbing big paydays ultimately comes down to this: you'll be sorry.
Actually, we are sorry. We are sorry that we did not rein in the casino culture of Wall Street years ago. We didn't -- and look where we are now.
I hate to break it to the bonus apologists, but scare tactics aren't working. Pay curbs are here for banks big and small. If, as you threaten, we lose the so-called "best people" on Wall Street, then so be it. If these are the same "best people" that former Merrill Lynch & Co. Chief Executive John Thain talked about in defending the 11th-hour bonus payout he made before his deal with Bank of America closed, then what happens without the best people? Does Merrill lose double the near $30 billion it lost last year?
[...]
Unless tenured at a university, we all face the risk of being replaced by someone better. Smith points out that since 1970, 28 major Wall Street firms have failed or been taken up in mergers. Again, that's a pretty small number when compared with the number of newspapers, car companies, restaurant chains or anything else closed or sold in a merger during that time. [...]
After doling out more than $350 billion to acquire stakes in investment banks and commercial banks, the U.S. government -- you and I, as taxpayers -- definitely own the biggest banks on Main Street and Wall Street.
The government either has effectively bought majority stakes in these companies or put more cash into them than they are worth. If these companies did not want the government exercising its right of ownership, then they should have not accepted the cash and prepared a bankruptcy filing.
(Excerpt) Read more at marketwatch.com ...
Makes sense to me.
If you don;t like the rules, DON’T TAKE OUR MONEY!!!!!!!!!!
Well you see there is a slight difference between “best people” and “criminals.” How about if we allow our new Marxist masters to decide how much everyone and everything are worth! That worked out REAL WELL in the Soviet Union, China, Cuba...want me to go on!!?? IT’s called marking the death of enterprise, excellence, industry and invention. Welcome to the brave new world.
A salary cap of $500k in NYC is absurd. After taxes, there's maybe $225k left - rent/mortgage payment for the family would run another $10k /mo and school tuitions for IV and Muffin run a minimum of $25k per pumpkin per yr. Throw in the mandatory high-maintainance wife and all of sudden, the guy will be singing "Will ya spare me a dime?" Seriously, in New York that limit is too low while in New Orleans, it is okay. Think $750k to $1M in the apple.
Bonuses should only get paid by profitable firms. A golden handcuff could be designed with options held by the company for a period of time. Leave too soon and options expire.
Anyway, listing to those whores in Congress really scares me. Some of them are actually speaking of capping salaries and bonuses of those who have not received any Federal funds. Eventually, they will rationalize that depreciation or expensing helathcare premiums is a quasi governmental benefit and there, the whores have the right to set limits.
Animal Farm was required reading when I was in high-school - it should be everywhere.
Marketwatch and many other sites regarding financials, Business and Economics have been bombarded by the hate the rich virus...it is deflection for the Marxist Criminals and their DemoRats. The posters are surely the most ignorant of the ‘oppressed’ OBots.
This is where I get confused. Supposedly the stake purchased by the feds were "preferred" shares which are more akin to a debt instrument than an equity stake. Preferrred shares generally have no voting power, and hence, should not be able to control the Board of Directors who control executive compensation.
Is there a way around the caps for smart companies? Is $500k the top pay for anyone or just a few top execs? Could you pay the “CEO” $500k to sleep at his desk, while the VP of Actually Getting Things Done gets the $3 million salary (Think Jim and Dagny Taggart from Atlas Shrugged)?
Don't forget the high-maintainance mistress.
For $500K I might consider putting off retirement for a few more years.....I think I could manage to screw up as badly as these guys have for a lot less money.
On the other hand, if I have to move to New York City to do it - I'll pass.
Three groups of Americans are out of touch with the rest of America, they are Wall Street, DC politicians and academia. All three have their own world and rational of reality. Wall Street has no one to blame but themselves. In one month (Sep 2008) they did more damage to the US economy than Bin Laden did over twelve months of clean up cost (2 trillion vs 100 billion). Their opulance and stupidy did more to advance Karl Marx in the US than the entire attempt by the Soviet Union during the Cold War. If the GOP is smart, dump these losers from the party and coalition. For years traditional businessmen/financiers warned that Wall Street was increasing the risk to this country with all their new debt and leveraging fiancial vehicles. The Wall Street types pooh pooh these remarks and claimed that they have accurately modeled the debt management and risks and they have full control of the system. Guess what, Sep 2008 proved otherwise. America is going to be stuck with a severe recession/depression because of these jerks, and to make matters worst, they created an openning for the leftwing socialist to come to power and wreak the country further. Today Shakespere would say “death to lawyers and ...bankers”.
***If you don;t like the rules, DON’T TAKE OUR MONEY!!!**
Rush just mentioned the BailOut deal with General Motors. IIRC They will lay off 10,000 white collar (non-union) employees as dictated. (job stimulation dontchayknow)!!!
Before long, GM will be owned by the union. GM will be a donor to the Dem Party in perpetuity.
If GM couldn’t compete, we should have allowed it to collapse.
The Free Market would have corrected the situation.
The only place in the economic scene where the government should get involved is with unfair trade practises which damage the American economy and lose American jobs to foreigh trade cheats - like Communist China and OPEC.
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