Banking scandal, crime, corruption or stupidity of American citizens

Bankers get bonus billions from taxpayers

Despite the worst financial crisis since the Great Depression, Wall Street firms expect to pay billions in executive bonuses after being shored up with billions in taxpayer dollars.

the-bankersMany banks paying bonuses are receiving billions in capital from the Treasury department as part of the government’s $700 billion financial rescue plan. The Troubled Asset Relief Program, known as TARP, was announced in September.

Stock brokerage giant Merrill Lynch is receiving $10 billion from the government. The struggling institution is merging into Bank of America.

Bank of America, which is getting $15 billion from TARP, is offering bonuses equaling up to 100 percent of revenue Merrill’s brokers generate, in order to retain them, said Bloomberg.

“The public is angry about this, and they should be,” said Joan Claybrook, president of Public Citizen, a consumer advocacy organization in Washington.

“The deal was the $700 billion bailout would provide money to banks to increase their liquidity to extend credit to businesses and the public. The public’s irritation with this is we’re going into debt as a nation to try to save the economy, and then these banks are using the money to pay bonuses to executives,” she said. “The cost is equal to about $3,000 to $4,000 per citizen, yet many are losing their homes. It’s morally and economically wrong.”

“Wall Street firms will say the money isn’t from the bailout,” said Altmire. “But there is no separate pot of money. You have all the money in your budget, and you decide what to do with it.”

an American dream – to become rich if someone lose!


TRIBUNE-REVIEW | Nov 13, 2008 by Thomas Olson – Via AftermathNews

2 Responses to “Banking scandal, crime, corruption or stupidity of American citizens”

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