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WH's Romer on Street Bonuses - "Simply Outrageous"
I’m feeling a bit like a puppet on a string. I got sucked into watching
the bank big shots get grilled by Congress. At one point I thought they
were actually squirming a bit. Even that new guy, what’s his name from
BoA? He had nothing to with any of this. He still looked he was doing
the bowing and scraping thing.
At the same time the Boss gathers all of the financial troops (was
Volker there?) onto a stage and announces Beaucoup new taxes on the
nasty bankers.
A one two punch. It looked impressive. I think it was just show.
The big banks have a gajillion of tax loss carry forwards and plenty
more losses to take as they please to minimize taxes. Don’t look for
this to add a dime to the till until after the next presidential
election.
As for that squirming and tough questions stuff, I think it was just an
act. The “Boys” had to do a lay down on this one. They wanted to look
beaten, taxed, and humbled. They had to. They had no other choice.
There are two powerful reasons for this theatre. The first is there is
a very high level of awareness of how much dislike America currently
has for it’s financial institutions. That is a troubling development.
If you walk down that road it ends up in a very bad place. We most
certainly are ‘walking’ at this point. They question is, does the
‘tongue-lashing’ and ‘big new taxes’ get anyone to turn around and go
the other way?
The second reason is that it was intended to blunt the criticism that
will surely follow when the banks provide the full details on 2009
compensation.
Last Sunday Christina Romer, the Chair of the President’s Economic Advisors was on “This Week”. Their words
STEPHANOPOULOS: ““Do you see any sign that the big banks are
going to demonstrate the kind of fundamental constraint the president
has called for?
ROMER: I sure hope so, because, you know, the American people…
STEPHANOPOULOS: But you're shaking your head, "No."
ROMER: ……the idea that, as the financial system heals, they just go back to business as usual is -- is simply outrageous.
Well Ms. Romer did not get her wish. The banks are paying out a record
$145 bil. This will cause a stink. The theater looked good, for a few
days at least. But it isn’t going to work for long.
So much for form, we need some substance.
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The tri state area is dead without the witholding taxes on those bonuses. Im tired of all this talk about bonuses. Its getting boring. Lets talk about green jobs costing 125k a pop.
Or the sweetheart deal on health plans.
The White House's outrage would be a bit more genuine if they made some mention of Freddie and Fannie's bonuses when they were announced.
Cat and mouse bullshit.
"what is the definition of "is"?"...
why does GS have to short something they just sold to a client?
It's like selling a ship to a merchant knowing full well there is a hurricane coming to sink the boat. Call AIG, they are suckers enough to take the other side of the bet.
Bad stuff.
same charade, different characters.
Because they can't make money unless they cheat. Same thing with their HFT scam. Market maker by rear end.
Now the public in facing hidden taxes by the banks who are making their money off of fees? Unbelievable they way they are sucking it out of all of our pockets.
More talk...
no action.
No one's fooled by these Obama people.
Posted on another thread - Yves Smith has a good article today on the shell game the administration is playing
Obama’s “Get Tough on Banks” Again Tries to Play the Public for FoolsTwo questions:
1) Who loaded up on Bear Stearns 30 and 25 puts with a week left til expiration and the stock in the 50-60 range?
2) Did any prop desks combine CDS protection on BSC, LEH, or AIG with short stock or put positions?
Seems to me there was massive 10b-5 liability and some of those bonuses ought to be spent on criminal defense lawyers.
After that, if there's any bonus cash left over maybe it could go toward cigarettes in prison.
Save your eyes, ears and sanity.
Either off someone at 85 Broad, in CONgress, or a lobbyist
or take the time and figure a way to work around this, like starting a bank, joining AIPAC where you can make policy and likely lots and lots of pelf, or living off the grid.
Sorry but you guys are just ignorant. I'm not a banker and I have no love for them But THEY ARE NOT THE PROBLEM. Greenspan, Bernanke, Frank Dodd. Those are your culprits. The next in line? THE AMERICAN PEOPLE. That's right - YOU ARE AT FAULT. Everyone benefited from rising home prices and living beyond our means. Even those who did not take out liar loans etc. The banks are no different from the mortgageg brokers in every single town in this country or the average American who participated in this disgrace. We as a people have collectively failed. If you want to have a witch hunt so be it but you are no different from McCarthy or any other populist throughout history that chose to try to scapegoat others. You want to get to the root of the problem? Look in the mirror.
Riiigghtt.. Lord Blankfein should be canonized, made a saint and Dick Fuld should receive full value for the stock that became worthless, Bobby Rubin, Timmay, and Benochio should be on Mount Rushmore...
Thank you, Mrs. Thain, for your input.
BS, Fry the bastards.
You know what is outrageous?
This is:
http://www.infowars.com/obama-information-czar-calls-for-banning-free-sp...
Do .300 hitters return their salary when their batting average falls below the Mendoza line? Seen Barry Bonds or Mark McGwire return any of the dough they earned for their
steroid induced homerun seasons? Would Christine Romer give up a 'bonus' if she was going to get one regardless of her performance. Probably not!
Even when people are badgered and threatened to return money
not earned and agree to do so it still sticks in their pockets like lint as witness those London AIG bonuses that have not yet been returned. Its mine! they will cry, I earned it, if not for this year then for all those years it took me to get here.
BANK RUN BITCHES!!!
United Banks of America, long live the UBA, cause the USA is a dead duck.
Don Juan was successful because he was able to identify women who had found true love. He was then able to fake that and achieve truth from manipulation.
America is now in a bar smoozing up a chic that has been through 5 hellish relationships all ending with theft, heart break and disappointment. It's not leaving that bar without it's nutsack ripped off like a paper towel.
The “Boys” should have unionized. The “International Brotherhood of Banksters” would have the seal of approval…
These bankers are nothing short of the greediest sons of bitches one can imagine.
There is no "best and brightest," no "masters of the universe," and they sure as shit aren't doing any "God's work."
Even the joe six packs can recognize that if you need a way out, pour out ALL bonuses on Haiti.
That would tell the American public where to stuff it, but no, let them eat cake in Haiti, and Main Street.
Rotten to the core, that Fraud Street. You are history.
Sell everything you have, and withdraw all your money from banks listed on public exchanges. Grab your pitch forks and demand that the Federal Reserve shills account for every dollar and cent they have ever printed. If it's leverage or vapor it doesn't count!
I am certainly not buying the sound bytes coming out of the WH these days. EVERYTHING is a thinly veiled political move with very little or no substance.
Don't expect any reform. This is just a reflection of the stage the US Empire's at now (having transitioned from a manufacturing to a financial economy). Kevin Phillips provides as good an overview as any in 'American Theocracy'. The US isn't the first to walk this path, but I expect the trip won't end any differently than it did for the British, Dutch, Spanish, Romans, etc...
now, drink your Soma
Never! :)
You have my surname :)