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  • Banker bonuses

    Apparently, the recently passed stimulus plan limits bonuses to 1/3rd of salary for the top 20 employees of each bank receiving government aid. Of course, bankers are unhappy about this.

    But frankly, I'm wondering why we don't have bankers running through a guillotine 24/7 in Lafayette Square. At a minimum, there has been an unfortunate lack of punitive measures so far by the gov't for banks and bankers that have dipped into the federal purse. The stimulus bill should have gone further. They're government employees now.

    US stimulus clears Congress

    By Daniel Dombey and Edward Luce in Washington and Francesco Guerrera in New York
    Published: February 13 2009 18:20 | Last updated: February 15 2009 19:21

    The biggest economic stimulus in US history cleared the US Congress late on Friday night, in a victory for Barack Obama less than a month after he took office as president.

    The $787bn package, which is now ready for Mr Obama to sign into law, represents the most important legislative effort yet to pull the US out of its recession.

    Under a little-noticed amendment, the package also imposes tough caps on top bankers working for US financial groups that have received government aid.

    Wall Street executives are enraged by the new pay rules, which will limit bankers’ bonuses to just a third of their total compensation and force them to take it in stock that cannot be sold until their companies repay the government funds.

    Bankers argued that the amendment, introduced by Chris Dodd, a Democratic senator from Connecticut, would cause a brain drain from the industry and could have the counterproductive effect of pushing up annual cash salaries.

    Bankers’ bonuses are typically several times their salaries and capping them at one-third of their total compensation would result in a large pay cut for many high-flying Wall Street employees.
    I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

  • #2
    Nationalize the insolvent banks and wipe out the shareholders.

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    • #3
      So far, the gov't has been a bunch of pussies. Why have the bondholders been immune? My tax money is going to make sure the bondholders are whole. F that.
      I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

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      • #4
        I'd have to learn more about what kind of CDS ****storm to expect if we let bondholders get wiped out before I make a decision on that issue.

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        • #5
          What makes you think that nationalization wouldn't trigger these CDS covenants?
          I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

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          • #6
            I don't really know. I expect it would, but I'm just not sure.

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            • #7
              Orf with their heads.

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              • #8
                In the past all those who did the CDS BS would have been executed.
                Scouse Git (2) La Fayette Adam Smith Solomwi and Loinburger will not be forgotten.
                "Remember the night we broke the windows in this old house? This is what I wished for..."
                2015 APOLYTON FANTASY FOOTBALL CHAMPION!

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                • #9
                  Nationalize and communize!
                  “As a lifelong member of the Columbia Business School community, I adhere to the principles of truth, integrity, and respect. I will not lie, cheat, steal, or tolerate those who do.”
                  "Capitalism ho!"

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                  • #10
                    They're afraid of nationalization, so they're trying to come up with all sorts of convoluted ways to impose restrictions short of nationalization. Ultimately, they're going to need to nationalize or hand out free cash to the banks anyway. I'm really hoping they don't opt for the latter.
                    "The purpose of studying economics is not to acquire a set of ready-made answers to economic questions, but to learn how to avoid being deceived by economists."
                    -Joan Robinson

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                    • #11
                      Down with their pay. It is sad to see so many people still defending the banksters and their outrageous bonuses.

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                      • #12
                        Originally posted by Victor Galis View Post
                        They're afraid of nationalization, so they're trying to come up with all sorts of convoluted ways to impose restrictions short of nationalization. Ultimately, they're going to need to nationalize or hand out free cash to the banks anyway. I'm really hoping they don't opt for the latter.
                        It will be the latter though. Gordon knows for a certainty that he doesn't stand a chance in the next elections and yet he still doesn't have the balls (not to mention the fact that he is partly the problem and this is likely to be exposed if he really goes after the (b)wankers).

                        Nope the printing presses are being prepared for that wonderful horse**** called 'quantitative easing'...

                        Buy Gold.
                        Is it me, or is MOBIUS a horrible person?

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                        • #13
                          Why do conservatives always assume that capitalists play by the same rules as everyone else? The system is run for the bankers and industrialists. The only way we'll nationalize their property is if they want it to be nationalized.
                          Christianity: The belief that a cosmic Jewish Zombie who was his own father can make you live forever if you symbolically eat his flesh and telepathically tell him you accept him as your master, so he can remove an evil force from your soul that is present in humanity because a rib-woman was convinced by a talking snake to eat from a magical tree...

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                          • #14
                            Originally posted by Naked Gents Rut View Post
                            Nationalize the insolvent banks and wipe out the shareholders.
                            A-****ing-men. The shareholders need to get wasted no just have their stock slightly watered down as has been done. As an added bonus if a company is completely nationalized then the bad debts can be easily moved off of their books on to the government's books without risking the bastards will spend half the money on bonuses or new jets or parties or other such crap.

                            The Oerdin plan of action calls for all banks to be audited a la Roosevelt's bank holiday with those found to be solvent allowed to reopen and operate as normal while those found to be insolvent (which will be most of the major national banks) getting nationalized with this shareholders completely wiped out. The banks can be merged and reorganized to make as many competitive national banks as possible, the bad debts moved off their books onto the government's books, and then in a couple years when the economy is rolling again the government can do IPOs reprivatizing the banks. That's as close to a win we're going to get out of this situation.
                            Last edited by Dinner; February 16, 2009, 01:53.
                            Try http://wordforge.net/index.php for discussion and debate.

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                            • #15
                              The Oerdin plan of action calls for all banks to be audited a la Roosevelt's bank holiday with those found to be insolvent allowed to reopen and operate as normal while those found to be insolvent (which will be most of the major national banks) getting nationalized with this shareholders completely wiped out.
                              In the rare event that we find one, what happens to the banks that aren't insolvent?
                              Last edited by Whoha; February 16, 2009, 02:13.

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