Forum Post: BANKSTER AND BROKERS $$
Posted 13 years ago on Oct. 6, 2011, 9:11 p.m. EST by kbee
(3)
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BANK OF AMERICA =In 2010, Brian T. Moynihan received $1,940,069 in total compensation. By comparison, the median worker made $33,840 in 2010. Brian T. Moynihan made 57 times the median worker's pay.
JP MORGAN CHASE = In 2010, James Dimon received $20,816,289 in total compensation. By comparison, the median worker made $33,840 in 2010. James Dimon made 615 times the median worker's pay.
Includes stock awards granted in February 2010 for 2009 Performance
GOLDMAN SACHS =In 2010, Lloyd C. Blankfein received $14,116,423 in total compensation. By comparison, the median worker made $33,840 in 2010. Lloyd C. Blankfein made 417 times the median worker's pay.
Includes stock awards granted in February 2010 for 2009 Performance.
Morgan Stanley = In 2010, James P. Gorman received $15,185,737 in total compensation. By comparison, the median worker made $33,840 in 2010. James P. Gorman made 448 times the median worker's pay.
Wells Fargo = In 2010, John G. Stumpf received $18,973,722 in total compensation. By comparison, the median worker made $33,840 in 2010. John G. Stumpf made 560 times the median worker's pay.
USB = In 2010, Richard K. Davis received $18,771,205 in total compensation. By comparison, the median worker made $33,840 in 2010. Richard K. Davis made 554 times the median worker's pay.
Bank OF NY/Mellon = In 2010, ROBERT P. KELLY received $19,379,257 in total compensation. By comparison, the median worker made $33,840 in 2010. ROBERT P. KELLY made 572 times the median worker's pay.
PNC = In 2010, James E. Rohr received $16,600,793 in total compensation. By comparison, the median worker made $33,840 in 2010. James E. Rohr made 490 times the median worker's pay.
and I have paid taxes all my adult life....
Do a google search on backdoor bailouts.....
Yea better take your "none of your business" complaints elsewhere. Its lublic information. Therefore open to public scrutiny. Get it?
Median workers at these companies don't make $33,840.
It is none of your business what any private sector executive earns.
Private sector executive compensation is actually public information.
Locate the "executive compensation" section in any 10k report.
=)
It is public information .... but it is still none of your business.
If you want a say in things like compensation, purchase large blocks of stock in these companies.
Until then, it is none of your business.
Since many financial (and other industry) executives' companies took undue risks and were subsidized by the tax payer, then yes, it actually does becomes our business.
No, the fact that they were subsidized by tax payers is your business, but that's Washington's fault.
All those banks paid the federal government back. In fact the federal government made a profit on the loans to the banks.
The compensation to anyone in a bank is none of your business.
Worry about public sector compensation. That IS our business and the taxpayers are being fleeced.
I don't know if you pay any taxes. Not too many people associated with the protest seem like viable or productive taxpayers.
//All those banks paid the federal government back. In fact the federal government made a profit on the loans to the banks.//
No, you're wrong. TARP got paid back, so you're half-right, but TARP is only a little bit of total government-backed subsidy to the finance co's, so you're maybe 10-20% right. Goldman got $10 MM via TARP (and paid it back), but got $12.9 MM through the bailout of AIG, money that is never going to be “paid back.”
Also, Temporary Liquidity Guarantee Program (Goldman borrowed at least $19 billion against the TLGP) allow banks to pay very little interest on this money. They want the free market they say? Well the free market would have forced their financing costs to be much higher if it weren't for TLGP.
Other bailout methods include PPIP.
Not to mention that 0% interest rates are essentially a subsidy to the big finance houses.
http://tiny.cc/3r92l
And I did pay taxes.
//Worry about public sector compensation. That IS our business and the taxpayers are being fleeced.//
I actually agree with you here to some extent, the amount that some public sector employees get paid is ridiculous. I think the sums of money flowing from multinational corporations AND unions is poisonous to the political process.
You're wrong.
All banks and financial institutions that did not have to give up an ownership stake to the federal government or the Federal Reserve have paid all the money back. With a profit. Goldman paid back the government.
AIG became almost fully owned by the Federal Reserve. The Fed is still trying to unload it piece by piece.
The Government sponsored enterprises like Fannie Mae and Freddie Mac are abortion cases that will cost the taxpayers hundreds of millions of dollars. They along with HUD started all this crap... yet these entities still exist.
GM and Chrysler were also illegally given billions in TARP money that the taxpayers will never see back gain.
There were definitely big losses in TARP and lots of corruption and graft. But, the Wall Street banks and investment banks paid their money back. The strings that were attached were too great to bother holding onto the money.
Some foreign banks got TARP money for some reason, but I don't know if they paid it all back.
I also do not think that Goldman should be allowed to borrow money from the Fed. But, it was the United States federal government themselves that forced them into a reorganization and forced them to take money. Goldman initially did not want to take government money. There was enough private capital. Hank Paulson forced them into this at a meeting in the NY Fed bank along with numerous threats.
I think Fanny and Freddie should be dismantled (there is no reason for the government to be in the housing market), GM and Chrysler should NOT have been given TARP money, and Solyndra and "green energy" should NOT be subsidized, whether that be directly, or through loans which are at a lower rate than what would otherwise be had in the market. See, I have this thing called philosophical consistency.
TARP is a small portion of the total amount of subsidies, direct and indirect, google for details.
But the ends don't justify the means here, none of this should have happened to begin with, capitalism and markets only work when creative destruction (see Joseph Schumpeter) is allowed to reign. I'm sick of government financing a politically connected elite, whether that be an example like Solyndra (ties to Soros, the pres of Argonaut VC who was a huge Obama supporter) or many of the financial companies. The debt should have been purged from their balance sheets, the banks should have been bought by more competent business people, and then broken up and sold off. Instead the government stepped in and put trillions of tax payer dollars at risk. Now we have an even more consolidated banking industry as consolidation was encouraged, and more assets in fewer places which increases overall systemic risk. We didn't do anything to alleviate the causes of the financial crisis, and now are dealing with it on a global scale, where, instead of the financial companies in trouble, it's sovereigns. And guess what? The global banks don't want to have to take the hit on their investments, so they are forcing "austerity" on countries and using their tool like the IMF to accomplish their goals (sound familiar?).
Sorry, but if you make poor investments, fucking suck it up and take the loss. Don't call on government cronies, NGOs, and the taxpayers to bail your pathetic selves out. It was Goldman who hid some of Greece's debt to begin with which allowed them to get into the Euro to begin with. No sympathy for these whiners, I have none. They want the free market for everyone but themselves, this is hypocritical to the highest extent.
Let the chips fall and let's excise the parasites from the economy. Because that's what they are, parasites, creating esoterically valued securities to play "pass the hot potato" to the next sucker until it all comes full circle and they go crying to the IMF / G20 / whatever the fuck it is.
Oh, and I forgot to mention QE1 and QE2 (and perpetual QE which will most likely follow) which is just a sham to buoy asset prices so that their liabilities don't look as bad in comparison.
As the Bank of England considers unleashing a fresh round of QE, Dhaval Joshi, of BCA Research, argues the approach of creating electronic money pushes up share prices and profits without feeding through to wages.
"The evidence suggests that QE cash ends up overwhelmingly in profits, thereby exacerbating already extreme income inequality and the consequent social tensions that arise from it," Joshi says in a new report
...
Oh, and regarding their liabilities:
Section 132 of the Emergency Economic Stabilization Act of 2008, titled "Authority to Suspend Mark-to-Market Accounting" restates the Securities and Exchange Commission’s authority to suspend the application of FAS 157 if the SEC determines that it is in the public interest and protects investors.
Yup, that's right, they can essentially value their liabilities at whatever the fuck they want to (not market rates) when the SEC, who is a fucking joke, decides. Can you value your student debt or credit card debt at a value other than market value? NO, do you see what I am trying to say here? There is a two-tier system at work, around the world, and the people are fucking losing.
I agree with much of what you just said.
The snowball that almost took down the system was the derivatives market. it got out of control. People who didn't even own the underlying securities were allowed to purchase CDS's on stuff they didn't even own..... which is wrong.
The root of all the problems was and has always been the United States federal government. They are the ones who forced banks to start lending to risky borrowers. They forced banks to throw out the window long held sound banking and lending standards and practices. The goal was basically a social engineering project to get people with bad credit the ability to get a mortgage and purchase a home. The sub-prime mortgage industry was born with the full and complete blessing of the federal government. Banks knew the mortgages were risky and didn't want to be holding the bag .... and bundled them into CDO's... all with the full blessing of the federal government.
Maybe you get the point..... but all of this started many years ago when idiots in government decided they were "do-gooders" and common sense rules business practices be damned to accomplish a social engineering goal.
There are very few problems in our society that were not created directly by government intervention or the unintended consequences of government intervention.
That is why people should be protesting against the government in D.C., not Wall Street.