Wall Street Fat Cats Are Trying to Pocket Billions in Bailout Cash

[babylonsister]

Wall Street Fat Cats Are Trying to Pocket Billions in Bailout Cash

By Nomi Prins, AlterNet. Posted November 7, 2008.

They got us into this mess, and now they want to cash out -- will President Obama stop them?


The election results pretty much confirmed the extent to which Main Street is rightly livid about the Wall Street mentality that led to our financial crisis. During his historic victory speech, President-elect Barack Obama told supporters, and the rest of the world, "If this financial crisis taught us anything, it's that we cannot have a thriving Wall Street while Main Street suffers."

But, it seems that Wall Street didn't get that memo. It turns out that the nine banks about to be getting a total equity capital injection of $125 billion, courtesy of Phase I of The Bailout Plan, had reserved $108 billion during the first nine months of 2008 in order to pay for compensation and bonuses (PDF).

Paying Wall Street bonuses was not supposed to be part of the plan. At least that's how Federal Reserve Chairman Ben Bernanke and Treasury Secretary Hank Paulson explained it to Congress and the American people. So, on Oct. 1, when the Senate, including Obama, approved the $700 billion bailout package, the illusion was that this would magically loosen the credit markets, and with taxpayer-funded relief, banks would first start lending to each other again, and then, to citizens and small businesses. And all would be well.

That didn't happen. Which is why it's particularly offensive that the no-strings-attached money is going to line the pockets of Wall Street execs. The country's top investment bank (which since Sept. 21 calls itself a bank holding company), Goldman Sachs, set aside $11.4 billion during the first nine months of this year -- slightly more than the firm's $10 billion U.S. government gift -- to cover bonus payments for its 443 senior partners, who are set to make about $5 million each, and other employees.

Whereas Wall Street may not believe in higher taxes for the richest citizens, it does believe in higher bonuses for the head honchos. No matter what the market conditions are on the outside, steadfast feelings of entitlement tend to prevail.

more...

http://www.alternet.org/workplace/106195/wall_street_fat_cats_are_trying_to_pocket_billions_in_bailout_cash/?page=entire

[liberal N proud]

1. I believe that was the original design when bu$h and Paulson demanded it

They had some friends who were down on their luck (not making a billion/year profit) and want to put some cash in their pocket so they could fill the gas tank on their yachts

[fasttense]

2. Billions of dollars for billionaires and multi millionaires but NOTHING

for the overworked and hungry poor. That's what Christian values and republicon leadership gets you.

[HereSince1628]

3. Emptying the Treasury was a strategic plan by those who seek to stop Democratic

reforms.

Starting in January the R's will be screaming about deficits and obstructing every action that could offset the deficits with fair taxation.

The first 18 months of Obama's administration are going to be difficult and the blame for that must be pinned on the R's RIGHT NOW.

[natrat]

4. a bipartisain strategic plan-barney frank

[acmavm]

5. Well, looks like the neos and their rich buddies will succeed

at their final opportunity to loot the country.

I was against the bail out. I think it was nothing more than giving the worst thugs amongst us a blessing to finish the looting of the country.