True Grist for the Populist Mills

They truly are a bunch of self-serving, greedy etc etc. …

http://www.guardian.co.uk/business/2008/oct/17/executivesalaries-banking

The Guardian October 17 2008

Top Wall Street bankers to receive $70bn pay deals

Simon Bowers

Financial workers at Wall Street’s top banks are to receive pay deals worth more than $70bn (£40.4bn), a substantial proportion of which is expected to be paid in bonuses, for their work so far this year – despite plunging the global financial system into its worst crisis since the 1929 stock market crash, the Guardian has learned.

Staff at six banks including Goldman Sachs and Citigroup will pick up the payouts despite being the beneficiaries of a $700bn bail-out from the US government that has already prompted widespread criticism. The government cash has been poured in on the condition that excessive executive pay will be curbed.

Pay plans for bankers have been disclosed in recent corporate statements. Pressure on the US firms to review preparations for annual bonuses increased today when Germany’s Deutsche Bank said many of its leading traders would join chief executive Josef Ackermann in waiving millions of euro in annual payouts……

5 comments

  • Isn’t it nice that the american goverment just gave the banks 700 bl and now there sticking it to the people. The goverment should step in and cancell the payment that the to the employees

  • http://casinocrash.org/ TNI and IPS blog.
    Also, I noted at rabble that Sarkozy et al simply giving the loaf another supercrust of crony financiers ‘monitoring’ for ‘early warning’ will increase implosion.

  • German state bank may privatize, revealing the true intent of the current shock round.

    “State bank BayernLB, however, said it wants to accept money from the package as soon as possible.

    “It’s about achieving a fast stabilization,” said Erwin Huber, BayernLB’s administrative board chief and the finance minister of the southern state of Bavaria in a Monday interview on the ZDF-Morgenmagazin television program.

    Mr. Huber didn’t say how much the bank would seek to borrow, but said that in order to meet the government’s conditions for the money, the bank would have to be restructured, partially privatized or merged with another bank.

    BayernLB and other public-sector wholesale banks — which are owned by a combination of state governments and municipally backed local banks — have faced hefty write-downs as a result of the subprime lending and credit crisis.”
    http://www.reportonbusiness.com/servlet/story/RTGAM.20081020.wfinancialgermany1020/BNStory/Business/home

  • sorry, here’s a better way to put it;
    The recent spate of nationalizations of private banks along with bailouts was a step towards loading state banks with vast and hefty risk so that they cannot now function under rules for capitalization, the private banks now the ones holding the solid government bonds. So the state banks have to privatize to regain their capitalization.
    Shall we start laughing madly?

  • Well, let’s look at the bright side. Since the money will be going to people at Goldman Sachs and Citigroup, the people who will be rewarded are the ones who did NOT cause all the problems.

    Gag, sputter. No, sorry, that didn’t work for me either. What a bunch of filthy greedy pigs.

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