Comments on: 70 billion dollars of bonuses for Wall Street: Your Bailout Dollars at Work http://firedoglake.com/2008/10/19/70-billion-dollars-of-bonuses-for-wall-street-your-bailout-dollars-at-work/ Firedoglake weblog Sat, 18 Feb 2012 07:53:53 -0600 hourly 1 http://wordpress.org/?v=3.1.2 By: Jkat http://firedoglake.com/2008/10/19/70-billion-dollars-of-bonuses-for-wall-street-your-bailout-dollars-at-work/#comment-1691148 Jkat Mon, 20 Oct 2008 05:43:13 +0000 http://firedoglake.com/2008/10/19/70-billion-dollars-of-bonusses-for-wall-street-your-bailout-dollars-at-work/#comment-1691148 <p>OT .. but .. GO OBAMA !!!! …. yesssssssss… we csn …</p> OT .. but .. GO OBAMA !!!! …. yesssssssss… we csn …

]]> By: dakine01 http://firedoglake.com/2008/10/19/70-billion-dollars-of-bonuses-for-wall-street-your-bailout-dollars-at-work/#comment-1690877 dakine01 Mon, 20 Oct 2008 02:09:28 +0000 http://firedoglake.com/2008/10/19/70-billion-dollars-of-bonusses-for-wall-street-your-bailout-dollars-at-work/#comment-1690877 <p>Folks may feel that the bonus is part of salary or to be expected but the reality is, it is NOT a guaranteed part of the salary. </p> <p>A similar situation is when I was working DoD contracts. These were often Cost-plus Award Fee deals. The contractor (and I was on both sides of the fence over the years) may think they deserved the full award fee but they still had to make a presentation showing <em>why</em> they were deserving of the fee. It was not (at least not supposed to be) awarded automatically. The bonus payments are not supposed to be automatic although, the treatment the management types we’re talking about has been that the bonus <em>has</em> been automatic. That has to change. If it was not part of the guaranteed compensation, which was already quite generous, then they don’t have an inherent right to it, no matter what they may think.</p> Folks may feel that the bonus is part of salary or to be expected but the reality is, it is NOT a guaranteed part of the salary.

A similar situation is when I was working DoD contracts. These were often Cost-plus Award Fee deals. The contractor (and I was on both sides of the fence over the years) may think they deserved the full award fee but they still had to make a presentation showing why they were deserving of the fee. It was not (at least not supposed to be) awarded automatically. The bonus payments are not supposed to be automatic although, the treatment the management types we’re talking about has been that the bonus has been automatic. That has to change. If it was not part of the guaranteed compensation, which was already quite generous, then they don’t have an inherent right to it, no matter what they may think.

]]> By: Knut http://firedoglake.com/2008/10/19/70-billion-dollars-of-bonuses-for-wall-street-your-bailout-dollars-at-work/#comment-1690865 Knut Mon, 20 Oct 2008 01:58:01 +0000 http://firedoglake.com/2008/10/19/70-billion-dollars-of-bonusses-for-wall-street-your-bailout-dollars-at-work/#comment-1690865 <p>I’m pissed as hell at the bonuses, but I’m going to take a stab at defending them. The bonus is often considered part of salary, like summer money for professors. It would be better if these guys got straight pay, but this is the way it works. They expected something. Whether they deserve it is another question. I’m just saying that there was an implicit contractor between them and their employer. My guess that at least for the lower-downs, this is what is at stake. </p> <p>My personal take: these salaries and bonuses are what we call economic rent. That rent is now negative. They shouldn’t get a penny, since their opportunity cost is now zilch. Excuse me, less than zilch.</p> I’m pissed as hell at the bonuses, but I’m going to take a stab at defending them. The bonus is often considered part of salary, like summer money for professors. It would be better if these guys got straight pay, but this is the way it works. They expected something. Whether they deserve it is another question. I’m just saying that there was an implicit contractor between them and their employer. My guess that at least for the lower-downs, this is what is at stake.

My personal take: these salaries and bonuses are what we call economic rent. That rent is now negative. They shouldn’t get a penny, since their opportunity cost is now zilch. Excuse me, less than zilch.

]]> By: diogenes http://firedoglake.com/2008/10/19/70-billion-dollars-of-bonuses-for-wall-street-your-bailout-dollars-at-work/#comment-1690806 diogenes Mon, 20 Oct 2008 00:17:16 +0000 http://firedoglake.com/2008/10/19/70-billion-dollars-of-bonusses-for-wall-street-your-bailout-dollars-at-work/#comment-1690806 <p>Totally in keeping with the kleptocracy.</p> <p>When exec drove US Airways into BK twice to shred vendor and labor contracts, not only did the judge uphold executive contracts, he allowed them to enrich themselves further with ‘retention’ bonuses.</p> <p>Whay one would want to retain the very folks who drove the company into BK remains unanswered.</p> Totally in keeping with the kleptocracy.

When exec drove US Airways into BK twice to shred vendor and labor contracts, not only did the judge uphold executive contracts, he allowed them to enrich themselves further with ‘retention’ bonuses.

Whay one would want to retain the very folks who drove the company into BK remains unanswered.

]]> By: SanderO http://firedoglake.com/2008/10/19/70-billion-dollars-of-bonuses-for-wall-street-your-bailout-dollars-at-work/#comment-1690805 SanderO Mon, 20 Oct 2008 00:14:50 +0000 http://firedoglake.com/2008/10/19/70-billion-dollars-of-bonusses-for-wall-street-your-bailout-dollars-at-work/#comment-1690805 <p>Shareholders are like voters… each one a small voice, easily ignored. Large institutional investors, like pensions and mutual funds need to get serious and do something. They were too silent as they were making lots of cash… turned a blind eye… wink wink, nod nod. They were enablers, weren’t they?</p> <p>The system is rotten from top to bottom. Purge it and start a new.</p> <p>Seize the assets of the bastards.</p> Shareholders are like voters… each one a small voice, easily ignored. Large institutional investors, like pensions and mutual funds need to get serious and do something. They were too silent as they were making lots of cash… turned a blind eye… wink wink, nod nod. They were enablers, weren’t they?

The system is rotten from top to bottom. Purge it and start a new.

Seize the assets of the bastards.

]]> By: BooRadley http://firedoglake.com/2008/10/19/70-billion-dollars-of-bonuses-for-wall-street-your-bailout-dollars-at-work/#comment-1690796 BooRadley Sun, 19 Oct 2008 23:58:59 +0000 http://firedoglake.com/2008/10/19/70-billion-dollars-of-bonusses-for-wall-street-your-bailout-dollars-at-work/#comment-1690796 <p>These are publicly traded companies. I have to think the shareholders will be as pissed off as the rest of us.</p> These are publicly traded companies. I have to think the shareholders will be as pissed off as the rest of us.

]]> By: BooRadley http://firedoglake.com/2008/10/19/70-billion-dollars-of-bonuses-for-wall-street-your-bailout-dollars-at-work/#comment-1690794 BooRadley Sun, 19 Oct 2008 23:57:51 +0000 http://firedoglake.com/2008/10/19/70-billion-dollars-of-bonusses-for-wall-street-your-bailout-dollars-at-work/#comment-1690794 <p>Schumer and Dodd are on my list of offices to call tomorrow. </p> <p>Obama should beat McCain to the punch on this and speak out against it. You know McCain is going to jump all over this.</p> Schumer and Dodd are on my list of offices to call tomorrow.

Obama should beat McCain to the punch on this and speak out against it. You know McCain is going to jump all over this.

]]> By: BooRadley http://firedoglake.com/2008/10/19/70-billion-dollars-of-bonuses-for-wall-street-your-bailout-dollars-at-work/#comment-1690792 BooRadley Sun, 19 Oct 2008 23:56:47 +0000 http://firedoglake.com/2008/10/19/70-billion-dollars-of-bonusses-for-wall-street-your-bailout-dollars-at-work/#comment-1690792 <p>Thanks Ian.</p> <p><a href="http://digg.com/business_finance/70_billion_dollars_of_bonuses_for_Wall_Street_Your_Bailout" rel="nofollow">digg</a></p> <p>I’m so pissed I can’t see straight.</p> Thanks Ian.

digg

I’m so pissed I can’t see straight.

]]> By: SanderO http://firedoglake.com/2008/10/19/70-billion-dollars-of-bonuses-for-wall-street-your-bailout-dollars-at-work/#comment-1690790 SanderO Sun, 19 Oct 2008 23:52:42 +0000 http://firedoglake.com/2008/10/19/70-billion-dollars-of-bonusses-for-wall-street-your-bailout-dollars-at-work/#comment-1690790 <p>gated estates… my friend</p> gated estates… my friend

]]> By: ImperialFlow http://firedoglake.com/2008/10/19/70-billion-dollars-of-bonuses-for-wall-street-your-bailout-dollars-at-work/#comment-1690789 ImperialFlow Sun, 19 Oct 2008 23:51:10 +0000 http://firedoglake.com/2008/10/19/70-billion-dollars-of-bonusses-for-wall-street-your-bailout-dollars-at-work/#comment-1690789 <p>Perhaps people will eventually figure out that protesting the government is a massive waste of time and resources, they’re not the ones who really make the decisions.</p> <p>If you want to get things done, get 10,000 people on the front lawn of one of these CEO’s mansions.</p> Perhaps people will eventually figure out that protesting the government is a massive waste of time and resources, they’re not the ones who really make the decisions.

If you want to get things done, get 10,000 people on the front lawn of one of these CEO’s mansions.

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