Just in case you don’t think that the “bailouts” are the biggest larcenies ever on American soil, check this out:
In the Financil Times, Greg Farrell and Julie MacIntosh report Merrill paid bonuses as losses mounted ahead of sale to BofA
Merrill Lynch took the unusual step of accelerating bonus payments by a month last year, doling out billions of dollars to employees just three days before the closing of its sale to Bank of America.
There’s really just no positive spin to be put on this and I don’t see – short of excusing the ruling class from criminal responsibility – how this is not prosecuted.
Merrill and BofA shareholders voted to approve the takeover on December 5. Three days later, Merrill’s compensation committee approved the bonuses, which were paid on December 29. In past years, Merrill had paid bonuses later – usually late January or early February, according to company officials.
So this was a “hurry up an steal” type of deal for them.
Despite the magnitude of the losses, Merrill had set aside $15bn for 2008 compensation, a sum that was only 6 per cent lower than the total in 2007, when the investment bank’s losses were smaller.
So, about 20% of all the money WE gave them went for bonuses. To a failing company. And not for business. IOW – STOLEN.
The bulk of $15bn in compensation was paid out as salary and benefits throughout the course of the year. A person familiar with the matter estimated that about $3bn to $4bn was paid out in bonuses in December.
Nancy Bush, an analyst with NAB Research, described the size of the 2008 Merrill bonus payments as “ridiculous”.
No – I think that should be “criminal”!
And so, once again, we watch as billions are transferred from the taxbase – from workers, not investors – to the failures, glitterati, and professional thieves that our political class is become. There’s little other description that I can think of that applies to the lack of action or restraint that EITHER party or any of the legislators bring to this game.
The Rs were good at it, the Bushes excelled – making out very nicely with the first Savings & Loan debacle, but the Kennedy’s profit from year after year of entitlement politics fed by those that contribute to election funds. The Rs may have held the reins the last few years but the Ds were very darn eager to shovel money to these guys, nearly a trillion so far, with no oversight. Now set to confirm a serial tax cheat and insider as the next Treasury Secretary, the Obama administration falls into the same trap.
You want my support for another dime going anywhere that ain’t defense or infrastructure – put it on a spreadsheet and load it on the Internet. Where the hell are all the GD fees these banks charge? Where is the interest on our checking accounts going? Why should we pay a single effin’ penny if every salary, office decoration, and expense is not put to the same scrutiny as the government.
Oh – and argh!