This page has been archived and commenting is disabled.

The CEO Of Failed Dexia Made €1.95 Million In 2009 And 2010 Despite A €150 Billion Government Guarantee And A Fed Bailout

Tyler Durden's picture





 

Below we present some observations on the compensation package of the CEO of bank that is about to be no more (in its existing pre-BearStearns'ed form), a bank which since 2008 had operated with an implicit governmental guarantee of €150 billion and which bank was the biggest recipient of the Fed's taxpayer-funded bailout generosity during the Great Financial Crisis, confirming once again that when it comes to putting US taxpayer capital at risk for total loss, the Fed is truly second to none, without much commentary. It has all been said already numerous times...

From Flanders Today

Governor Luc Coene was speaking only days after the NBB took over the oversight role previously held by the CBFA, days which have been marked by mounting disquiet at the way top bankers pay themselves and each other huge bonuses. The latest example: Dexia bank CEO Pierre Mariani, it was announced, would be receiving a bonus down from €800,000 to €600,000. Closer inspection revealed that Mariani (pictured) was now receiving a "function premium" to account for that missing €200,000. His whole package came to €1.95 million - exactly the same as last year.

Dexia received €6.4 billion in fresh capital from the government in 2008, as well as a credit guarantee, to allow it to borrow money on the markets, worth €150 billion.

The main problem with the bonuses is that the banks in question were all to some extent bailed out by the federal and the Flemish governments in the financial crisis of 2009, and some of the aid still has to be repaid. In addition, trade unions noted that large bonuses for bankers come as a slap in the face to ordinary staff who are being asked to accept caps on pay rises as a result of the economic situation.

Last week Kris Peeters, minister- president of Flanders, whose government had stepped in to support Dexia and KBC, said that he intended to speak to the top executives of the banks personally. According to Coene, that is now his job.

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sun, 10/09/2011 - 12:08 | Link to Comment Mike2756
Mike2756's picture

No more Fed bailouts. If they do it again, Washington will look like Cairo.

Sun, 10/09/2011 - 12:12 | Link to Comment Comay Mierda
Comay Mierda's picture

And new york will look like mexico city

Sun, 10/09/2011 - 12:15 | Link to Comment gojam
gojam's picture

I hope they're so arrogant that they give big bonuses this year. Only then will people be angry enough to rise up.

Sun, 10/09/2011 - 13:07 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Oh they'll be arrogant, you can always count on that. But they can also be sneaky and arrogant at the same time. So they'll claim they're poor-mouth this year, with 'zero-bonus Xmas' in the headlines (they've already been testing those rumors last week). And they'll also claim that they're using paper cups for the office holiday party. Just don't look too close at those shoes or that watch. We could bail the economy on the shoe budget at high-end firms. 

Sun, 10/09/2011 - 15:15 | Link to Comment Bananamerican
Bananamerican's picture

a bonus...

the dude gets a BONUS....a Bone US.

i'll tell ya what's in store for him & all the other Sons of bitches like him...

 

We're going to hold on to him by the nose and kick him in the ass.
We're going to kick the hell out of him all the time. . .
. . .and we're going to go through him like crap through a goose!

 

Sun, 10/09/2011 - 15:24 | Link to Comment Cynical Sidney
Cynical Sidney's picture

when sheeples become lions they will say 'OFF WITH HIS HEAD!'

Sun, 10/09/2011 - 16:16 | Link to Comment navy62802
navy62802's picture

The American people deserve what comes to us. Too many people are ignorant and lazy. The vast majority of people have been asleep at the wheel of their democracy for the past several decades. And this is the end result. The American public deserves what happens to it because of their chronic indifference and lack of political engagement There used to be such a thing called "civic responsibility" which has now been completely lost on our contemporary American society. The boning is past due.

Sun, 10/09/2011 - 19:52 | Link to Comment Escapeclaws
Escapeclaws's picture

You got something against sports?

Sun, 10/09/2011 - 12:57 | Link to Comment Sudden Debt
Sudden Debt's picture

Actually, when you walk in new york, it's like half of mexico is already on location....

Sun, 10/09/2011 - 12:14 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

@ Mike2756

This is now beyond disgusting.  Clawbacks now! 

Sun, 10/09/2011 - 12:21 | Link to Comment Long-John-Silver
Long-John-Silver's picture

Of course their going to do it. It's fun when you can gamble and lose money that was not yours and profit from it if you happen to win.

Sun, 10/09/2011 - 12:13 | Link to Comment Earl of Chiswick
Earl of Chiswick's picture

IMO, the continued payout of bonuses to any institutions that exist due to the generosity of the taxpayer and the lack of a clawback of same along with the absence of criminal prosecutions let alone nary an investigation is at the root of the anger of the 99.9%.

Sun, 10/09/2011 - 12:16 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Certainly here at ZH.

Sun, 10/09/2011 - 12:21 | Link to Comment Earl of Chiswick
Earl of Chiswick's picture
William Black: Why Nobody Went to Jail During the Credit Crisis

All right so you have massive fraud driving this crisis, hyperinflating the bubble, an FBI warning and how many criminal referrals did the same agency do, in this crisis. Remember it did well over 10,000 in the prior crisis. Well the answer is zero. They completely shut down making criminal referrals and whichever administration you hate the most, you can hate because while most of this certainly occurred in the Bush Administration, the Obama Administration has obviously not changed it. Obviously did not see it as a priority to prosecute these elite criminals who caused this devastating injury.

 

http://www.financialsense.com/financial-sense-newshour/guest-expert/2011...

Sun, 10/09/2011 - 18:05 | Link to Comment StychoKiller
StychoKiller's picture

Whoda thunk that the "Peter Principle" could be so lucrative? :>(

Sun, 10/09/2011 - 12:09 | Link to Comment cossack55
cossack55's picture

Rewarding failure=re-elections/re-appointments

Sun, 10/09/2011 - 12:11 | Link to Comment nah
nah's picture

maybe we can put subways and mcdonalds in the dexias

Sun, 10/09/2011 - 12:11 | Link to Comment Comay Mierda
Comay Mierda's picture

Occupy the fed

Sun, 10/09/2011 - 12:31 | Link to Comment Mike2756
Mike2756's picture

There might be a General Pinochet lurking out there somewhere, who knows?

Sun, 10/09/2011 - 13:33 | Link to Comment j0nx
j0nx's picture

Occupy the DOJ more like. Worthless mofos. Courtesy of the racist douchebag that runs it and his CiC.

Sun, 10/09/2011 - 12:26 | Link to Comment whstlblwr
whstlblwr's picture

Well, expect more big bailouts if vote Herman Cain!!!

Cain on all news shows we ignore this morning. He’s so great and take lead in polls, LOL!! But he’s bullshit candidate. He want to rob the taxpayer too. Look here is article on how he rob employees but give bonus to the big corporate boss!!

Cain served on the board of directors throughout Aquila's ill-fated trading misadventure and the subsequent collapse of the company's retirement fund. In fact, he chaired the board's compensation committee, which, according to the lawsuit, had direct oversight of the push to get employees to invest more and more in Aquila stock….Aquila and other companies would buy energy from California at a lower capped price, move that energy out of the state, then re-sell it back to California at a higher price for a tidy profit.

Richard Itteilag, a plaintiff in the Aquila class action, lost 87 percent of his savings. Robert Goodson, a 20-year Aquila employee, lost 75 percent. Michael Reinhardt lost a staggering 94 percent. All told, thousands of employees saw their retirement funds eviscerated thanks to Aquila's Enron-esque activities.

Cain also saw fit to dole out $30 million in bonuses, not including stock options, to the top five execs at Aquila in 2002, with the company's stock plummeting. A month after the Kansas City Star reported on the hefty bonuses in July 2002, the company laid off 500 employees, and the losses to employees holding company stock had reached hundreds of millions of dollars.

The suits alleged that Cain and top company officials violated a 37-year-old federal law requiring that employers manage employees retirement programs responsibly. (Cain's presidential exploratory committee did not respond to a request for comment.)

http://atlantapost.com/2011/05/25/a-real-reason-to-be-mad-at-herman-cain/

http://motherjones.com/politics/2011/05/herman-cain-aquila-lawsuit-2012

Sun, 10/09/2011 - 13:48 | Link to Comment UBIGDummy
UBIGDummy's picture

PLEASE don't forget that PERSON also was on the FEDERAL RESERVE BOARD.  DO you really want a DICK from the FRB as Prez? 

OH COMON PEOPLE.  THIS IS PROOF that TPTB are now putting CAIN on the table infront of you to distract you further from Ron Paul.  Cain won ONE F IN (QUESTIONABLE) straw poll and now was a TOP TIER GUY.  OWTF EVER.  Ron has won like a dozen or top 2, and now he's getting a bit of traction.  PLEASE SHEEPLE.  DON"T FALL for this shit head also like most you who fell for Bachman, and PERRY.  MITTENS ROMNEY for some reason is not fallen off, and for the life of me, I CAN NOT understand how the Republican Party wants a repeat of 2 Democrats (MCCAIN) running for Prez. 

Read between the lines. CAIN should stick to pizza, and tptb are trying to screw you again.  Hope the entire economy collapses tommorow so that people can see this moron has NO ANSWERS to fix it.  The man with the foresight, answers, and intelligence is Ron Paul.

Death to Keynesianism and Kenyanism and RP 2012

Sun, 10/09/2011 - 15:26 | Link to Comment Bananamerican
Bananamerican's picture

"Republican presidential contender Herman Cain amplified his criticism Sunday of the growing Occupy Wall Streetmovement, calling the protesters “jealous’ Americans who "play the victim card” and want to “take somebody else’s” Cadillac.
GOP politicians in recent days have stepped up their criticism of the protesters, with House Majority Leader Eric Cantor (R-Va.) calling them "mobs" who have pitted “Americans against Americans.”

http://www.latimes.com/news/politics/la-pn-cain-occupy-wall-street-20111...

Sun, 10/09/2011 - 14:30 | Link to Comment warchopper
warchopper's picture

I'm confused. Could someone please tell me when the 9/9/9 special runs out? Does that mean I get 9 pizzas, 9 toppings, for 9 dollars? 9 toppings is a little too much for me, and so is 9 pizzas. Maybe he could make it 2/2/2, or something like that.

Sun, 10/09/2011 - 15:36 | Link to Comment macholatte
macholatte's picture

 

that would be.....

9 pizza slices

9 toppings (1 per slice)

$9 each

 

Sun, 10/09/2011 - 20:28 | Link to Comment Dingleberry
Dingleberry's picture

Just like Obama, another black Republican.......everyone is a Republican in Congress when it comes to banker suck-offs and Israel. 

Sun, 10/09/2011 - 12:14 | Link to Comment Seasmoke
Seasmoke's picture

and i think that sums up what the protests are all about.......these scumbags better be very careful (but im not sure they have that morality pause button most of us have)

Sun, 10/09/2011 - 12:49 | Link to Comment Loose Caboose
Loose Caboose's picture

these scumbags better be very careful (but im not sure they have that morality pause button most of us have)

Psychopaths do not have that particular piece of equipment.

Disobey.

Sun, 10/09/2011 - 12:15 | Link to Comment SilverIsKing
SilverIsKing's picture

Don't blame him for taking the money. Blame those that agreed to give it to him.

Sun, 10/09/2011 - 12:21 | Link to Comment Rynak
Rynak's picture

Last i checked, any inter-party transaction requires at least two parties.

Responsibility and "blame" is such a fucked up concept.

You did something or you didn't. End of story.

Sun, 10/09/2011 - 12:58 | Link to Comment Joseph Jones
Joseph Jones's picture

In the immortal words of Homer Simpson..."It takes two to lie: one to lie, and one to listen".

Sun, 10/09/2011 - 18:38 | Link to Comment LetThemEatRand
LetThemEatRand's picture

MMMmmmmmmm..... Money walls.....

Sun, 10/09/2011 - 12:25 | Link to Comment colorfulbliss
colorfulbliss's picture

Thank you for saying this. I was trying to explain this very same thing to a friend that was bashing welfare recipients. He just couldn't seem to understand the concept.

Sun, 10/09/2011 - 12:36 | Link to Comment AGoldhamster
AGoldhamster's picture

one hand/gangster feeds the other, the new normal in these circles ... there's nobody else to blame but the sheep which stubbornly all 4-5 years reelect these gangsters and whores into power.

As long as the sheep are kept busy with popcorn, coke, tv, sports and porn - nothing will change.
So do not complain about the gangsters and whores - but start complaining about the idiots on the right and the left which will do the same stupid thing again and again ...

But let me guess: 95% of those commenting here - belong to the same armada of idiots. As they are gonna reelect the same armada of whores and gangsters.

What else to expect then???

 

Sun, 10/09/2011 - 13:02 | Link to Comment diesheepledie
diesheepledie's picture

"there's nobody else to blame but the sheep which stubbornly all 4-5 years reelect these gangsters and whores into power."

THANK YOU. The sheep are the true enemy. Greedy fat bloated lazy animals.

 

Sun, 10/09/2011 - 14:46 | Link to Comment SilverIsKing
SilverIsKing's picture

Say whatever you want about my popcorn, coke, tv, and sports. Just lay off my porn or we got a problem.

Seriously though, I don't think the majority of those posting here fit the profile you describe. If they did, you'd be at yahoo.com.

Sun, 10/09/2011 - 12:16 | Link to Comment max2205
max2205's picture

Need to start a bank company STAT!!

Sun, 10/09/2011 - 12:19 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Make sure you break some laws along the way!

And screw your employees!

Steal from the pensions!

Gamble with CDSs, and make sure you are skimming along the way!

Bribe any regulators, or redirect them to porn sites!

Then when it all fails: wash, lather, rinse...  Start over!

Sun, 10/09/2011 - 12:28 | Link to Comment max2205
max2205's picture

Right! Thanks

Sun, 10/09/2011 - 12:30 | Link to Comment I am Jobe
I am Jobe's picture

Yeap and it is how things operate in DC and Whore Street.

Sun, 10/09/2011 - 12:21 | Link to Comment I am Jobe
I am Jobe's picture

Emails raise fresh questions on Obama energy loan

http://www.reuters.com/article/2011/10/08/us-solyndra-idUSTRE79700020111...

WTF

Sun, 10/09/2011 - 12:36 | Link to Comment Mike2756
Mike2756's picture

Presidente Solyndra is finished.

Sun, 10/09/2011 - 12:59 | Link to Comment RSloane
RSloane's picture

God, I hope so. I would rather the Taco Bell chihuahua be president than Obama.

Sun, 10/09/2011 - 13:37 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

Gidget Chipperton's corpse would, indeed, make a better President.

http://en.wikipedia.org/wiki/Taco_Bell_chihuahua

Sun, 10/09/2011 - 15:25 | Link to Comment RSloane
RSloane's picture

So true. Now if we could get a band of clapping seals assigned to cabinet posts also, we would have the perfect Executive Office roster.

Sun, 10/09/2011 - 20:00 | Link to Comment WmMcK
WmMcK's picture

Is it "Yo Quiero ..."  (o Me encanta)?

Sun, 10/09/2011 - 12:28 | Link to Comment markar
markar's picture

Cain=Fed Reserve Gov=insider===discredited.
Ron Paul is the only option for Prez.

Sun, 10/09/2011 - 12:29 | Link to Comment DutchR
DutchR's picture

According to DeTijd Belgium is going to pay €4 billion for Dexia......

Sun, 10/09/2011 - 12:54 | Link to Comment kahunabear
kahunabear's picture

Sounds like chump change compared to the US crony capitalism system.

Corporate crony boards with pensions and mutual funds endorsing their crazy option and compensation schemes with their votes have destroyed the country.

Sun, 10/09/2011 - 13:00 | Link to Comment digalert
digalert's picture

One more reason the FED has to go. Who the Hell knows how much dough the Bernank has funneled into the trans-atlantic pipeline.

Sun, 10/09/2011 - 14:39 | Link to Comment NuYawkFrankie
NuYawkFrankie's picture

You seem to be laboring under the illusion the the US dollar is actually  worth anything - and that giving away trillions of worthless US dollars  to Europe actually means anything - except for the gullible , of course!

Here's a CLUE: 1 x 0 = 0 and 1,000,000,000,000 x 0 = 0.

Hope that helped - you're welcome ;)

Sun, 10/09/2011 - 18:15 | Link to Comment StychoKiller
StychoKiller's picture

Perhaps, but $1650 (or so) of those goose eggs can still be tendered for a Toz of AU (there's a lot of idjuts out there!).

Sun, 10/09/2011 - 13:12 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Regular people have a hard time understanding how people with no remorse or 'conscience' operate. They get it that perhaps they need to cool it for a little while, but they'll be right back to the old tricks. More than feeling that there's nothing wrong with what they do, they actually feel it's the right thing to do in a Darwinian sense. That justifies any kind of theft no matter how petty, and any means justifies the ends: getting more powerful. 

Sun, 10/09/2011 - 19:58 | Link to Comment Escapeclaws
Escapeclaws's picture

SOCIOPATHS RUIN LIVES--ask a victim.

Sun, 10/09/2011 - 13:30 | Link to Comment Piranhanoia
Piranhanoia's picture

There is no way our government will change. Then, when enough angry people start striking, protesting and telling them no,  There is no way our government will change.  They won't be able to protect themselves if they are out of power.  They will be beholding to their people.  There is no way our goverment will change.  They will try bringing home the armies and use them as police. But the army hates their leaders for killing so many of their friends. There is no way our government will change. Then the government will use Blackwater to protect the capitol from the people and the army. There is no way our government will change. The government controlled tv will keep telling you that things are fine, getting better and those protests aren't increasing in every city, state and nation.  There is no way our government will change. They will begin harming and killing protestors like Yemen, and Saudi Arabia and Syria, Libya, Egypt and New York and Washington DC. There is no way our government will change. They will claim we are the terrorists, and act accordingly.  There is no way our government will change.

The launch window is closing. Every day we are farther from representative democracy. We are on a trajectory toward the sun. Gravity will soon be so strong that not even a finger can be lifted to stop the motion.  Even if someone wanted to.  

 

 

Sun, 10/09/2011 - 13:45 | Link to Comment imapopulistnow
imapopulistnow's picture

Chump change compared to American executives.

Sun, 10/09/2011 - 14:13 | Link to Comment NuYawkFrankie
NuYawkFrankie's picture

Exactly! I can only assume that the point the author of this piece is trying to make is HOW LITTLE  the European Banksta Class steals compared to their esteemed American counterparts!  `LOL!!!! hahahaha!!!

After all, on Wall St - the biigger the balls-up, the BIGGER the BONUS!

Jeez! The mens bathroom attendant in GLobman Sucks makes  more than this! LOL!!!

Sun, 10/09/2011 - 13:54 | Link to Comment zeroman
zeroman's picture

Tyler, why are you making a big deal about the dexia exec making 1.95 Euros??  That is chump change compasred to our boys overhere that nearly bankrupted the world.

Sun, 10/09/2011 - 14:00 | Link to Comment PulauHantu29
PulauHantu29's picture

Difficult to retain this quality of talent...so they say.

Sun, 10/09/2011 - 14:23 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

flemish fl-l-l-lander-ing!

Sun, 10/09/2011 - 18:16 | Link to Comment StychoKiller
StychoKiller's picture

okely-dokely!

Sun, 10/09/2011 - 14:25 | Link to Comment The Deleuzian
The Deleuzian's picture

Could this be bullish for both the USD and Gold..."A bi-umvirate" of sorts? 

Sun, 10/09/2011 - 14:33 | Link to Comment yabs
yabs's picture

how long are people going to put up with this bullshit

wuth all the monet spent on bailing out banks we could have given every nation waste water treatment planets 

replanted rainforests, cleaned the seas up, developed sustainable energy basically sorted all the worlds 

problems but instead get to save bankers bonuses

Tell me this is a bad dream and i will wake up

how did the world get so insane

Sun, 10/09/2011 - 14:55 | Link to Comment RSloane
RSloane's picture

People will put up with it because this news is going to push the stock markets higher, therebye enriching their investments, therebye earning them more money. They don't care about anything else. Its a bottom-line culture.

Sun, 10/09/2011 - 15:45 | Link to Comment PulauHantu29
PulauHantu29's picture

CEOs have to eat too!

 

Sun, 10/09/2011 - 20:02 | Link to Comment Escapeclaws
Escapeclaws's picture

It's hopeless. Where's the Anti-Christ when we need him? He'll fix everything--get rid of those scoundrel bankers, you name it!

Sun, 10/09/2011 - 22:55 | Link to Comment Yen Cross
Yen Cross's picture

 "n  O Leader , > is a GOOd, leader?/    Caugh/ caugh/ Blood spirts?

Wed, 11/09/2011 - 11:18 | Link to Comment karmete
karmete's picture

Great!!! thanks for sharing this information to us! sesli chat sesli sohbet

Do NOT follow this link or you will be banned from the site!