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Why Should We Limit Executive Pay on Wall Street? Here's Why

From ABC News:

In 2007, Wall Street’s five biggest firms — Bear Stearns, Goldman Sachs, Lehman Brothers, Merrill Lynch, and Morgan Stanley — paid a record $39 billion in bonuses to themselves.
That’s $10 billion more than the $29 billion loan taxpayers are making to J.P. Morgan to save Bear Stearns.
Those 2007 bonuses were paid even though the shareholders in those firms last year collectively lost about $74 billion in stock declines — their worst year since 2002.

The bonuses paid by these five firms averaged $201,500 per employee. ABC points out that the figure is more than four times the median household income in America.






Comments

Let's take back all the billions that theses crooks have taken out of our pockets and fix the broken economy with that, instead of using more middle-class tax dollars to cover up the graft and greed that has caused most of the problems we now see. Let those who benefited from the system now support what's left of it.

Posted by: Bill G on 09/22/08 at 7:29 AM  Respond

Many of the senators who protected Fannie and Freddie, including Barack Obama, Hillary Clinton and Christopher Dodd, have received mind-boggling levels of financial support from them over the years.
Throughout his political career, Obama has gotten more than $125,000 in campaign contributions from employees and political action committees of Fannie Mae and Freddie Mac, second only to Dodd, the Senate Banking Committee chairman, who received more than $165,000.
Clinton, the 12th-ranked recipient of Fannie and Freddie PAC and employee contributions, has received more than $75,000 from the two enterprises and their employees. The private profit found its way back to the senators who killed the fix.
There has been a lot of talk about who is to blame for this crisis. A look back at the story of 2005 makes the answer pretty clear. Senator John McCain was one of the three cosponsors of S.190, the bill that would have averted this mess.

Posted by: Fanny Mae on 09/22/08 at 8:04 AM  Respond

Yeah, if we are going to talk about financial contributions to the Democrats, then I suggest you read the NYT article that points out the buddy buddy relationship that Rick Davis had with Fannie and Freddie. It looks like, no one, and I mean no one has their hands clean in this mess.

Posted by: TRW on 09/22/08 at 9:01 AM  Respond

Dear FannieMae troller,
You will not change any hearts and minds here. Peddle your wares elsewhere.

Posted by: ParkRidge on 09/22/08 at 9:02 AM  Respond

Oh, and while we're at it, why doesn't someone slip McCain a note and tell him to stop railing against the "golden parachute" of corporate execs when his main financial adviser, Carly Fiorini, received her own golden parachute of $45 million after she was fired and as HP laid off 20,000 employees. I would pay someone to make a plausible argument, with a straight face, of how to reconcile this blatant hypocrisy.

Or, maybe someone can get to the bottom of the fact that as recently as a couple of months ago, McCain was deregulator McGee, along with Phil Gramm, but all of a sudden he is running away from his record and found his religion.

Give me a break. Are the democrats innocent in this, no. But let's get off our high horse about how "prescient" McCain was about this financial crisis.

He was about as prescient, when a year ago, Barack was talking about the need for more troops in Afghanistan and McCain was saying we could "muddle through."

Posted by: TRW on 09/22/08 at 9:06 AM  Respond

The least we can do for Wall Street execs (if we're not firing the lot of them) since they're letting the government bail them out is to give them government-level compensation.

Posted by: Peggy on 09/22/08 at 2:23 PM  Respond

2005 was about 25 years too late. And, let's remember that John McCain was embroiled in the S&L fiasco/bailout. Sorry, no pass for him.

Posted by: Peggy on 09/22/08 at 2:27 PM  Respond

The evangelical right is blood thirsty. They never see a war that they don’t like. They will vote for McCain who is an admitted serial adulterer. I haven’t heard them condemn the pregnancy of unmarried, 17 year old Bristol Palin.

How they distort the Christian message! Jesus was a peace maker and cautioned repeatedly about the sins of fornication and adultery.

And the “faith”based initiative--giving our taxes to preachers--isn’t that unconstitutional?

Posted by: coronada_xv on 09/22/08 at 4:19 PM  Respond

And, let's remember that John McCain was embroiled in the S&L fiasco/bailout. Sorry, no pass for him.

Right!

The Keating Five.
John McCain & 4 Democratic Senators. Three of whom were found by the Senate Ethics Committee to have engaged in unscrupulous conduct by interfering in an investigation.

McCain & John Glenn were cleared of any impropriety.

If you're going to bring it up as an issue, tell the whole story, 'eh?
Even if it DOESN'T make your party look that appealing.

Posted by: McCain & Four Dems on 09/22/08 at 4:55 PM  Respond

$400K cap for executives? Is McCain nuts!!

How about negative compensation?? If my neighbors are losing their homes over this mess -- then the execs should also go down. Instead ….

How about criminal charges?

How about some jail time?

I don't want to see one PENNY of my tax dollars go to these undeserving executives.

NO TAXDOLLARS FOR EXECUTIVE GOLDEN PARACHUTES!!

Posted by: Marga Coleman on 09/24/08 at 8:51 PM  Respond

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