“Goldman Sachs, which is getting $10 billion from the bailout plan, is paying out $6.85 billion in bonuses, according to media reports. That’s $210,000 per employee. And that’s despite a 47% drop in its profit and 53% drop in its share price.
Morgan Stanley, which is also getting $10 billion from our government, is doling out $6.44 billion in bonuses or $138,700 per employee, even though its profits tumbled 41% and its shares are off by 69%.
And even the failures at Lehman Brothers are collectively getting over $1 billion in bonuses.”
Dick Morris speculated that McCain could have gained 5 points if, during the debates, he had simply said that he intended to appoint Rudy Giulliani to investigate and prosecute these guys. Of course, that would have led back to many members of Congress:
"Frank is supposed to be one of the ?smart ones? in Congress. Here’s what he had to say:
?I am deeply disappointed that a number of financial institutions are distorting the legislation that Congress passed at the President’s request to respond to the credit crisis by making funds available for increased lending. Any use of these funds for any purpose other than lending ? for bonuses, for severance pay, for dividends, for acquisitions of other institutions, etc. ? is a violation of the terms of the Act.?
Nice words. Too bad they’re as hollow as a rotten log.
The language of the bailout does talk about homeowner assistance ? limit executive pay ? provide for government audits ? etc. But it doesn’t dictate serious limits on how the banks can use the money. Barney Frank may have thought he had an understanding with Paulson, Fed Chairman Ben Bernanke and the big banks.
But that’s like having an understanding with Al Capone."