Bank Pay Guidance
How would you feel if after you had worked an entire year a guy showed up and told your company to cut your pay by 10%?
Let’s not argue the merits of Wall Street– Pleeeezzze. In my opinion, the current iteration of Wall Street is a giant manipulation of the small investors money. Firms such as Goldman Sachs have not been regulated for many years. Their high risk investment strategy facilitated the a government created crisis. Had Goldman Sachs and Morgan Stanley been allowed to go out of business, we’d be back on the road to a sounder economy. Yes, millions would have lost their life savings, but the Marxists will get it all in the end anyway.
In case you missed the story, Goldman Sachs bonuses this year are huge. Thanks to being able to borrow unlimited funds at 0% interest and continue their high risk investment strategy. Yes, the U.S. taxpayer subsidized the bonuses. Should we determine how much a person is paid then? No. My opinion is we as a people were stupid enough to allow it, then they should get it. And if we are stupid enough to keep allowing them to get “free” money then we deserve the rape.
In an effort to skirt the rules, mostly stock, instead of cash, will be paid on the bonuses. A person may still make get $10 million bonus, they will just have to wait to cash out. Is that a penalty? Are you being hoodwinked by the administration and congress? If you believe banks such as Goldman are playing by everyone else’s rules then yes you are.
Fed Summons CEOs of 28 Top U.S. Banks to Meet With Supervisors
By Craig Torres and Ian Katz
Oct. 31 (Bloomberg) — The chief executive officers of 28 of the largest U.S. banks have been summoned to meet with supervisors at Federal Reserve banks to discuss new rules on compensation, said a person familiar with the matter.
The Fed this month said it will review the largest banks to ensure compensation doesn’t create incentives for the kinds of risky investments that brought the global financial system to the edge of collapse, prompting bailouts of firms including Bank of America Corp. and Citigroup Inc.
By summoning bank chiefs, the Fed is sending a message that it wants the pay reviews taken seriously, said Kevin Petrasic, an attorney at Washington law firm Paul Hastings and a former special counsel at the Office of Thrift Supervision.
“It starts with the CEO,” Petrasic said. “It is not subtle at all to tell the most highly compensated people in the organization, ‘Okay we are starting with you.’”
