As the leaders of the G-20 gather in London, an interesting dichotomy in views has become apparent. The continental European leaders are generally reluctant to follow the US lead in adopting massive government stimulus programs to try to jump-start their faltering economies.
Deservedly, the bulk of the blame is being placed on the collapse of the [...]
Posts Tagged ‘banking’
Too tightly wound to unravel
Posted in Current Events, Uncategorized, tagged bailout, banking, capitalism, economic collapse, Economy, performance bonuses, regulations, retention bonuses, sub-prime mortgages on March 26, 2009 | Leave a Comment »
We’re learning a bit more about the “unprecedented powers” that President Obama and Sec. Treas. Geithner are seeking to deal with instability that exists in the financial system. But to understand what’s needed going forward, it’s important to see how we got here.
In the 1920s, commercial banks were selling stocks to their customers in addition [...]
And the “let them eat cake” awards keep coming
Posted in Uncategorized, tagged bailout, banking, Citibank, economic collapse, leadership, let them eat cake, office renovation, values, Vikram Pandit on March 19, 2009 | 6 Comments »
Today it’s Vikram Pandit of Citibank’s turn, and he gets a “twofer.” Mr. Pandit announced recently that Citibank has turned around and begun to show a profit. And he talked proudly of how he was being responsible and taking a much lower salary of only $1 million. Great, we thought, now he can start repaying [...]
A solution to the AIG bonus outrage
Posted in Current Events, tagged AIG, AIG bonuses, bailout, banking, economic collapse, Economy, escrow, pay for performance, performance bonuses, populist rage, retention bonuses, taxpayers on March 16, 2009 | 2 Comments »
For the purposes of argument, let’s accept current AIG CEO Liddy’s argument that the company is contractually bound to pay out the bonuses AND that their employees are the brightest bulbs in the pack — the only ones who can unwind the esoteric financial instruments that sent them into the financial toilet. Yes, it’s a [...]
Another “let them eat cake” award
Posted in Current Events, tagged bailout, Bank of America, banking, corporate greed, let them eat cake, Merrill Lynch on February 27, 2009 | 1 Comment »
The latest award goes to Ken Lewis, CEO of Bank of America. Despite taking billions in federal TARP funds, he is refusing to reveal what he knows about the $3.6 billion that went to Merrill Lynch senior staff (some 700 people) on the eve of his institution taking over the failing investment bank. Not only [...]
Possibly unrelated items – updated
Posted in Current Events, tagged banking, economic collapse, Economy, leadership, Republican Party, tax policy on February 26, 2009 | Leave a Comment »
As I scanned the news tonight, several items caught my eye.
First was this list of the 15 states having the highest percentage of $200,000 plus earners. Interestingly, only one of the states listed, Texas, voted for John McCain last November. The others voted for Obama, even knowing that their taxes would go up should he [...]
And the “Let Them Eat Cake Award” goes to…
Posted in Current Events, tagged bailout, banking, Big 3, economic collapse, Economy, John Thain, leadership, Merrill Lynch, sub-prime mortgages on December 8, 2008 | 4 Comments »
It was bad enough when the AIG execs treated themselves to a multi-day spa package right after they got their bailout funds. Then, last month the CEOs of the Big 3 traipsed down to Washington in their private corporate jets to beg for their bailout. In both incidents, someone was wise enough, brave enough, outraged [...]
