What do you all think of the bailed-out banks and their biz as usual huge bonuses?

[Boilers]

This is where my capitalism faith falls short. So, curious what others think.

Seems US and UK banks are once again back to business as usual and are planning on doling out substantial amounts to workers in the form of bonuses.

Any number of news searches can find representative examples.
bank bonuses - Google News

Are these institutions in any way paying back the citizenry's monies?
Are they showing any remorse in near financial collapse of western civilization?

Latest Wall St. bonuses are simply obscene

RBS to Pay Staff Up to 5-Million Pounds in Bonuses, Times Says - Bloomberg.com

 

[Blue Tile Spook]

My bank, which wasn't in danger of failing but was forced to take the TARP funds, has paid their portion back to the .gov.

Are you wanting opinions on what other countries are doing with their banks, or just here in the US? There is a big difference in what is being planned between the two.

 

[Boilers]

Either.

 

[Blue Tile Spook]

Several of the European Union members are trying to pass legislation to severely limit CEO pay, tie work performance to pay/benefits, restrict the type of trading that led to the global financial meltdown and several other ideas that escape me at the moment. The UK in particular has been chewing the butts of their largest banks because, as you wrote above, they have tried to return to the dangerous policies that nearly sank most every financial system in the world. The banking industry in Norway and Sweden are STILL trying to recover and the financial gurus aren't sure that they will be able to do so.

As far as the US, I don't expect much to happen. I was very surprised at the actions of the .gov and the out-going CEO of Bank of America on either Thursday or Friday of last week. Because BoA lost approximately $2 billion the out-going CEO won't receive ANY pay nor ANY bonus as he leaves. As far as I know, that is precedent setting.

JP Morgan Chase was being praised in the news the other day for having large profits once again, and I think it was their news that pushed the Dow Jones Industrial Average to 10,000 again. Unfortunately, these profits come on the back of their customers through higher than ever overdraft fees, credit card interest rates that have doubled (or more) overnight with little warning, additional fees for checking and savings accounts, etc.

I have not heard many specifics for the large banks to pay back what they owe the .gov, only that "record profits will allow us to pay off our debt sooner than we anticipated", but that allows no time line.

 

[hornadylnl]

The bonuses wouldn't be an issue if we had real capitalism on this country because these people would be unemployed. It is highly possible if there weren't government meddling in the marketplace we would never be in this mess in the first place. Banks don't loan money to people who can't pay it back unless they are forced to do so. Please don't lose your faith in capitalism as capitaism is not in any way responsible for this mess.

 

[danielocean03]

The bonuses wouldn't be an issue if we had real capitalism on this country because these people would be unemployed. It is highly possible if there weren't government meddling in the marketplace we would never be in this mess in the first place. Banks don't loan money to people who can't pay it back unless they are forced to do so. Please don't lose your faith in capitalism as capitaism is not in any way responsible for this mess.

I agree 100%, great post.

Propping up failing companies that are in their messes due to faulty business practices need to fail. It's just that simple. Bailouts aren't in any way, shape or form a part of the Capitalist system, they are destroying capitalism by allowing defunct companies to exist and run in deficit on taxpayer dollars. Bailouts do far more harm than good, and they are only delaying the inevitable.

 

[eatsnopaste]

We can argue all we want over whether the bailouts were needed or not, but they were given and now we have to deal with it. My opinion is, if they took the money and still posted a loss..then nobody gets a bonus, not with my money! Pay it back then do what you want. As far as the CEO not taking any pay...hmmm maybe the $100 MILLION he is getting as his retirement package helps sooth the pain? $100,000,000.00 I hope he can eke by with that....of course he still qualifies for social security....that will help.

 

[rambone]

Capitalism was killed by Government intervention a long time ago.

 

[VN Vet]

All this BS and I am still un-employed! Go Figure!

 

[Oldcoyotedream]

Hey the Banks own the country, they do what ever they want!
NWO Basturds!!!

 

[TopDog]

The bonuses wouldn't be an issue if we had real capitalism on this country because these people would be unemployed. It is highly possible if there weren't government meddling in the marketplace we would never be in this mess in the first place. Banks don't loan money to people who can't pay it back unless they are forced to do so. Please don't lose your faith in capitalism as capitaism is not in any way responsible for this mess.

 

[MACHINEGUN]

I think it totally stinks. Nobody is looking out for the hard working people anymore.

 

[antsi]

The bonuses wouldn't be an issue if we had real capitalism on this country because these people would be unemployed. It is highly possible if there weren't government meddling in the marketplace we would never be in this mess in the first place. Banks don't loan money to people who can't pay it back unless they are forced to do so. Please don't lose your faith in capitalism as capitaism is not in any way responsible for this mess.

Bingo.

Pressuring banks to lend to high risk borrowers is not capitalism.
Using taxpayer money to bail out failing banks is not capitalism.

Anything that happens after that isn't a failure of capitalism. It's a failure, all right, but not a failure of capitalism.

 

[Fletch]

Like others here, I'm wondering how capitalism really enters into the discussion. Banks that take government bailouts are not capitalist... if forced to take the money, they're victims. If not, they're leeches. Either way it's not capitalism that's at work here, it's government.

 

[sig-sweet]

bailing out banks and the auto industry isn't capitalism, it's socialism....period. If it was capitalism then the better managed and healthier companies would buy out the mis-managed and take a go at it.

 

[melensdad]

This is where my capitalism faith falls short. So, curious what others think.

Well the bank is only doing what any good capitalist would do.

I see ABSOLUTELY NO PROBLEM WITH IT.

Now that said, I do have a problem with giving the failed banks a handout via the TARP funds in the first place. But if you are going to give a private business a BLANK CHECK to do with what it pleases so it can continue on in business then you are simply rewarding them for their failure. The fact that they are rewarding their top performers is nothing more than what they should do, the performers EARNED the money. The fact that they are doing it with MY money, WRENCHED FROM MY WALLET at the point of an IRS gun, well I am not personally thrilled with it, but not because they are rewarding the people who actually made them profits but rather because they should not have gotten the hand out from the citizens in the first place.

 

[haldir]

Like most of you all, I was against the bailouts. They were anti-capitalist. Now that they took the taxpayer money, they are now fair game for government pushing their tails around. They have it coming as far as I am concerned. Pay back the money then do what you want.

I do think that compensation at the top levels has gotten a bit out of hand. I would like to see executive pay to be subject to a vote by the shareholders.

 

[Mgderf]

Like most of you all, I was against the bailouts. They were anti-capitalist. Now that they took the taxpayer money, they are now fair game for government pushing their tails around. They have it coming as far as I am concerned. Pay back the money then do what you want.

I do think that compensation at the top levels has gotten a bit out of hand. I would like to see executive pay to be subject to a vote by the shareholders.

Gee, accountability, what a novel concept!

 

[fireball168]

This is where my capitalism faith falls short. So, curious what others think.

.....are planning on doling out substantial amounts to workers in the form of bonuses.

I know a fellow that works for a bank.

He's in commercial lending, financing dealership facilities and floorplan for the inventory.

90% of his income is quarterly "bonuses".

Granted, it is nothing more than commission on the "sales" of said financing, but it was setup as a "bonus".

He's been demonized for working for a bank and getting his "bonus" by several folks.

Don't presume to understand how many folks get paid.