Call me naïve, but I for one am sick and tired of being held hostage by the banking/financial industry. And you should be too! The stimulus bill that was recently passed included a little nugget that prohibited top banking executives from receiving any type of cash bonus until the institution repays in full their TARP obligations. What is somewhat surprising is that the Obama Administration opposed the provision.
The reasons for any opposition to restricting executive compensation are as creative as they ridiculous.
Prohibiting bonuses will cause the banks to repay the TARP funds more quickly thus limiting their ability to lend.
Since when is it a bad thing to repay a loan quickly? The banks should be required to repay the loans in the most expeditious manner while loosening credit at the same time. Am I missing some thing here, but if I am loaned money I do not have the right to set conditions for my repayment. I can hear the credit card company collector laughing in my face!
Prohibiting bonuses will encourage financial institutions to increase salaries in lieu of bonuses.
Let me get this straight… The bank is going under but since the CEO cannot collect a bonus we’ll just quintuple his base salary. Real smart!
The banks claim that raising base salaries removes performance incentives. No, paying performance incentives for poor performance removes performance incentives!
Prohibiting bonuses will cause a flight of top executives… a “brain drain”.
Let us hope that it causes exactly that. Why in the world would we allow the very same characters who caused the greatest banking catastrophe in global history to remain in their positions? The bankers and traders have committed criminal acts. A great place to empty the brain drain may be the state pen.
When the government moved in to provide bridge loans to the automakers, the Republicans where bitching and moaning about the salaries of the union autoworkers. Where are those Republicans now? I don’t hear a peep from these robber baron, class warfare loving legislators. They will not be happy until our national economy resembles the Walmart model. I guess if you make $45.00 an hour you are destroying the company but if you rakeit its in a $500 million dollar bonus while the company is failing, you are part of a much needed brain trust. I’m sorry folks but for the first time on this blog I will have to make use of an expletive. This is absolute, complete and total BULLSHIT!
It is time to nationalize the failed financial institutions. Call it government appropriation of assets, nationalization or call it socialism.
I don’t care!
Enough is enough!
For another take on this subject, read The Modern Left’s piece, “Wall Street Still Doesn’t Get It”