10.24.2008

Your bailout at work, Part 2

After receiving the first $250 billion of a taxpayer bailout, Wall Street banks still won' t lend your money back to you at anything near reasonable interest rates. But they have found another use for your money: huge bonuses to executives.
Financial workers at Wall Street's top banks are to receive pay deals worth more than $70bn (£40bn), a substantial proportion of which is expected to be paid in discretionary 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 are in line to pick up the payouts despite being the beneficiaries of a $700bn bail-out from the US government that has already prompted criticism. The government's cash has been poured in on the condition that excessive executive pay would be curbed.

Just thought you'd like to know.

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