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Cuomo Demands Bonus Details From 8 Big Bailout-Beneficiary Banks
From a conference call that just ended, NY AG Cuomo is taking aim squarely at bank bonuses and is now demanding extensive info on bonus pools, bonus allocation, clawback provisions and vesting period data, from the 8 original bailout recipient banks. Did Hamptons real estate prices just drop 10%?
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OT: Chris Whalen of Institutional Risk Analytics just gave Geithner a serious boot up the rear on Bloomberg. Man, that guy plays well on television.
States budgets are crap. They are facing laying off thousands of police and firefighters. This is EXACTLY WHAT YOU DO NOT WANT TO SEE THEM DO. If they balance thier state budgets by pulling over armored cars and "inspecting" them with sticky fingers it would go better.
Police and Fire spending at the state level can not mount to more than 5% of their budget (admitted guess - aren't most people covered by city/county fire and police?). So the only reason they will not focus their cuts on the other 95% of their budget is that they know police and fire will get more of a negative reaction from a larger group of people as the state looks for empathy from its citizens (count me out). Those empathetic dimwits might even vote for a tax increase if they think Fire and Police departments are getting gutted.
Problem with state budgets is that spending has grown at 2X+ revenue growth and inflation. Just go back to their 2005 budget and erase 2005 and insert 2010. That will solve many of their problems. Police and Fire have no increase in the area or number of people they serve, so why should their costs be much higher now vs 2005?? True with every other area of State government.
Jan. 11 (Bloomberg) -- London Mayor Boris Johnson said that
as many as 9,000 bankers may leave the U.K. as a result of a 50
percent tax on bonuses announced last month.
The levy, which will be paid by banks that offer bonuses of
more than 25,000 pounds ($40,400), along with a new 50 percent
rate of tax on the incomes of all British residents earning more
than 150,000 pounds, may permanently damage London’s
competitiveness, Johnson said today in a statement.
"Such ill-thought-out plans come at a time when there is
light at the end of the recessionary tunnel and London is
excellently placed to compete and prosper," Johnson said.
"That prosperity will be threatened and the whole U.K. economy
will suffer if our financial sector is denied a stable tax and
regulatory regime."
Excuse me mr Boris but ... isn't this kind of money junkey reponsible for the UK state of fiscal instability ?
Or let me say it in other words - the guys the fucked up the whole economy is leaving ... This is the first step to recovery !
How does it make them less competitive? They won't do a bad job if they aren't paid enough? The london fix is going to explode this year and they see light at the end of the recessionary tunnel?
Andy is just another NY AG bully. It's his turn ti be gov! Gotta do something to remain in the public eye and look good.
Cuomo - another overreaching NY AG, with political ambitions, and a good populist issue to ride... destructive to state, and country, but goddamn does he believe in the righteousness of his cause (which is himself)!
Yet another comment that shows the US' slide into a kleptocracy is well deserved.
When has corporate accountability ever benefited j6p.....
Fly a little lower Icarus - your wings are melting.
Bonuses are just a symptom of a much larger problem. If we waste our time worrying about bonuses we will miss the real issue.
The real issue is that financial firms like Goldman, JP Morgan and others occupy a position that allows them to syphon to themselves money that they haven't earned.
The particular manner in which they do it, however, makes it look like the money was generated through legitimate business practices - even those engaged in this shady practice think they really 'earned' the money. But they haven't.
We need real reform of finance and financial institutions in this country so they serve only legitimate purposes, those necessary for a thriving economy.
The real issue is that financial firms like Goldman, JP Morgan and others occupy a position that allows them to syphon to themselves money that they haven't earned.
I'm the first to defend big pay disparities when they seem to be market-driven, but I agree that the banks are essentially playing at being legitimate businesses at this point and every one who works for them should be put on government pay scales until real risks are being taken. No risk, no reward.
At the SOURCE, this is a government problem. Banks are playing by the rules government hands them. And if those rules are unduly influenced by those subject to the rules -- again, a government problem. Contact your government representative - better yet, get a new one at the voting booth in November.
If two parties are misbehaving, do something about the party over which you have some real control - the government.
Also, I would love to know what "earned" means. If the government gets in that business of defining "earned," can't wait until they evaluate your bottom line output and productivity as they define it. Good luck with that.
+1
http://www.americanbanker.com/issues/175_6/huffington-1005933-1.html?ET=...
This explains why GS just announced that they might add "doing Robin Hood's work" in addition to "God's work" to their business model by possibly setting a minimum charity donation requirement to their bonus pool recipients.
Which is a complete joke because the "charity" their donations will be going to are the 100K a year private pre-school they are sending their little brats.
You gotta have Cuomo in your death pool now.
Crockett and Tubbs had this all figured out in 1985. Too bad they are retired.
http://www.youtube.com/watch?v=wvGFhl0Ij0c&feature=related
I'm sorry, I was too busy not giving a shit about several companies that should be burning their furniture for warmth if it weren't for the elected officials to demonstrate our extreme taxpayer generosity and keep them from having to admit to the epic levels of fail they managed to reach this past year and to the life of galactic poetic irony they're condemned to live as they simultaneously burn fags in effigy and troll for strange dick late at night along public restrooms.
I say fuck them. The financial industry knew exactly the kind of contract it was signing once it decided to deal directly and personally with the devil.