Comments on: Wall Street bonus datapoint of the day http://blogs.reuters.com/felix-salmon/2010/12/13/wall-street-bonus-datapoint-of-the-day/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: hsvkitty http://blogs.reuters.com/felix-salmon/2010/12/13/wall-street-bonus-datapoint-of-the-day/comment-page-1/#comment-21934 Wed, 15 Dec 2010 07:30:05 +0000 http://blogs.reuters.com/felix-salmon/?p=6553#comment-21934 Ernie, Socialist no. Plutocracy yes.

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By: ErnieD http://blogs.reuters.com/felix-salmon/2010/12/13/wall-street-bonus-datapoint-of-the-day/comment-page-1/#comment-21906 Tue, 14 Dec 2010 16:24:57 +0000 http://blogs.reuters.com/felix-salmon/?p=6553#comment-21906 I am a firm believer in captalism. Unfortunately, Wall Street ceased to be capitalist in 2008 and instead became the biggest socialist group in history. The media focus has been on TARP and its payback. Far bigger subsidies are coming from the more hidden programs that the Fed has to keep pumping money into those entities.

The TBTF institutions (most of them can’t even really be called banks) are getting essentially 0% loans on-demand with grossly over-valued assets whenever collateral is needed. Meanwhile, the same entities are jacking up fees and interest rates to average citizens.

Wall Street bonuses should be greatly limited or have significant tax surcharges until the Fed can move away from ZIRP. The bonuses are an annual drain on the financial companies’ working capital while ZIRP is in place to help the banks rebuild that capital. At the moment the Fed is simply a pass through spigot from taxpayers to the financial sectors’ bonus pools. This is not capitalism – it borders on theft.

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By: FifthDecade http://blogs.reuters.com/felix-salmon/2010/12/13/wall-street-bonus-datapoint-of-the-day/comment-page-1/#comment-21895 Tue, 14 Dec 2010 03:48:58 +0000 http://blogs.reuters.com/felix-salmon/?p=6553#comment-21895 “Americans will believe anything, it seems—except the idea that incentivizing bankers at systemically-important institutions to take big risks makes any sense at all.”

So that’s why I didn’t see clearly: megabonus bankers were paid to take risks, not to make profits. I guess they were pretty successful at the risk thing… shame about the profits.

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By: hsvkitty http://blogs.reuters.com/felix-salmon/2010/12/13/wall-street-bonus-datapoint-of-the-day/comment-page-1/#comment-21893 Tue, 14 Dec 2010 02:35:57 +0000 http://blogs.reuters.com/felix-salmon/?p=6553#comment-21893 That was well said Randymiller!

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By: randymiller http://blogs.reuters.com/felix-salmon/2010/12/13/wall-street-bonus-datapoint-of-the-day/comment-page-1/#comment-21892 Tue, 14 Dec 2010 02:29:47 +0000 http://blogs.reuters.com/felix-salmon/?p=6553#comment-21892 Once those firms took Taxpayer money, they become government sponsored enterprises, with an implicit guarantee that they would not be allowed to fail. Therefore, since their management cannot fail, they have no risk, and if there are no risks, there should be no reward.

Now, if those same executives would sign a document that says their company will never again accept taxpayer money, and that any bonus they receive will be placed in an escrow account subject to clawback, then we can talk about bonuses.

Remember that during the housing bubble, the Wall Street banks were declaring huge profits based on their marks going up. Huge profits meant huge bonuses, so it was in the financial interest of those CEO’s to manipulate the marks. How do we know that their present profits are not just the result of their marks going up again? Are these real profits, or paper profits?

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By: jte http://blogs.reuters.com/felix-salmon/2010/12/13/wall-street-bonus-datapoint-of-the-day/comment-page-1/#comment-21891 Tue, 14 Dec 2010 02:23:01 +0000 http://blogs.reuters.com/felix-salmon/?p=6553#comment-21891 Curmudgeon: Essentially, yes. It’s an apt metaphor for how out of touch most of Washington is on this issue — or something like the tax cuts. Imagine if the White House, Congress and the D.C. media all agreed that Elvis was still alive. But that’s how we’re operating here.

We had a nice country there for a while….

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By: Curmudgeon http://blogs.reuters.com/felix-salmon/2010/12/13/wall-street-bonus-datapoint-of-the-day/comment-page-1/#comment-21887 Mon, 13 Dec 2010 21:23:55 +0000 http://blogs.reuters.com/felix-salmon/?p=6553#comment-21887 So . . . what you’re implying is that 100 percent of the people in the Obama administration believe that Elvis is alive. There’s a headline for you.

Sorry, couldn’t resist.

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