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New York Attorney General Andrew Cuomo released reports that three banks - Goldman Sachs, Morgan Stanley, and JP Morgan Chase - paid bonuses that were greater than their net income:
"The report says that combined, these three firms earned $9.6 billion, paid bonuses of nearly $18 billion, and received TARP taxpayer funds worth $45 billion." The bankers "decoupled the bonus structure from reality and kept rewarding themselves."
Sheesh, they oughta give us back our money, ya think?
To be fair, the employees were the ones who made the money. I'm surprisingly OK with it. Maybe the Government should remain the owner and they can continue to make money for us year after year.
You know its funny that the same congressman that are hollering about priovate companies ;setup the same thing with fannie mae and freddie mac. They also as the ultimate review of both refused to audit them with braney frank saying it wasn't neceasry because if they go bankrupt ;we can always bail them out. They then had to fire the heads that got huge bonuses based on loans made and now stall a full inhvestigation of both.This is one of the real scandals to come IMO.
Cuomo,AKA Media *****. Where there is a camera, he will be there. The guy is a joke. Just about as bad as fox news. That girl Gretta. Everynight a headline, "Okay your blood pressure is going to boil when you find out who just got a bonus."
Lets not make money or give high pay to the most talented.
Talented??? And where would these soooo talented people get jobs elsewhere if they got no bonuses? If it weren't for you and I paying for TARP money, these banks would not have had the funds to pay the bonuses.
It is another matter altogether when the banks EARN the funds by the "talent" of these employees. I have zero problem with private banks making free-market choices, and rewarding their talented employees who made good things happen.
But in this case, the banks needed to dip into their TARP money in order to pay the bonuses, because their so-called "talent" couldn't make that kind of money on their own. I do have issues with that!
But in this case, the banks needed to dip into their TARP money in order to pay the bonuses, because their so-called "talent" couldn't make that kind of money on their own. I do have issues with that!
I didn't read the article (it won't load) but I thought they (employees) were earning 30% of the profit as a bonus. So yes they did actually earn the money.
It would be like if your employer lost $1,000,000 last year but you directly contributed to $500,000 in profit. Without you they would've lost $1,500,000.
If your pay structure was dependent on the profit you made and not company profit you would be entitled to a bonus (say 30% of $500,000 or $150,000).
I didn't read the article (it won't load) but I thought they (employees) were earning 30% of the profit as a bonus. So yes they did actually earn the money.
It would be like if your employer lost $1,000,000 last year but you directly contributed to $500,000 in profit. Without you they would've lost $1,500,000.
If your pay structure was dependent on the profit you made and not company profit you would be entitled to a bonus (say 30% of $500,000 or $150,000).
I hope that makes sense.
it doesn't make sense in this case because they paid bonuses greater than earnings.
it doesn't make sense in this case because they paid bonuses greater than earnings.
No, they paid bonuses greater than net earnings, not gross.
Maybe I should explain more.
Just using random numbers, let's say without these employees making this money they would've lost $16 billion. Would it be worth it to pay bonuses then?
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