« | »

Obama Can’t Control Wall Street Bonuses

From an apoplectic Associated Press:

Wall Street bonuses up 17 percent

By MICHAEL GORMLEY

Tuesday, February 23, 2010

Wall Street bonuses were up 17 percent to over $20 billion in 2009, the year taxpayers bailed out the financial sector after its meltdown, New York state Comptroller Thomas DiNapoli said Tuesday.

Total compensation at the largest securities firms grew beyond that figure and profits could surpass what he calls an unprecedented $55 billion last year, DiNapoli said. That’s nearly three times Wall Street’s record increase, a rate of growth that is boosted in part by the record losses in 2008 of nearly $43 billion, the Democrat said.

"Wall Street is vital to New York’s economy, and the dollars generated by the industry help the state’s bottom line," said DiNapoli.

Don’t worry, there is a ‘but’ coming.

"But for most Americans, these huge bonuses are a bitter pill and hard to comprehend. … Taxpayers bailed them out, and now they’re back making money while many New York families are still struggling to make ends meet."

Maybe if Mr. Obama and our news media would carefully explain that a) many of these institutions did not ask to be bailed out. And b) these institutions have already paid back the taxpayers’ money – with interest.

DiNapoli supports reforms that require Wall Street bonuses to be tied to long-term profitability, to force more stability in the volatile markets and "make sure the securities industry thrives without driving the rest of us out on a fragile economic limb."

DiNapoli notes the bonuses help state revenues tremendously as it faces an $8.2 billion deficit, but they are a "bitter pill" to most taxpayers nationwide

Again, why should it be a “bitter pill”?

The taxpayers (well, the government, anyway) made money from the bailout and now New York City and New York State won’t have to get so much of the taxpayers money to bail them out – thanks to the taxes collected from these bonuses.

Why don’t we hear about taxpayers finding the governments squandering of billions that does nobody any good (apart from the Democrat party) to be a “bitter pill”?

But let’s for the moment put the supposed morality of this issue to one side.

Obviously, we don’t think the White House should be deciding who should get what bonuses. But Mr. Obama thinks they should. Doesn’t his inability to ride herd on a handful of Wall Street executives call into question his ability to control the healthcare costs for the entire nation?

Mr. Obama can’t even control bank bonuses, even with the help of a ‘Pay Czar,’ and yet his ‘healthcare reform’ proposal assumes he can control one sixth of the US economy.

This article was posted by Steve Gilbert on Tuesday, February 23rd, 2010. Comments are currently closed.

3 Responses to “Obama Can’t Control Wall Street Bonuses”

  1. BannedbytheTaliban

    I wonder how much of that $20 Billion the government confiscated in the form of taxes? Eight, nine, ten billion. According to Biden’s logic, that would make Wall Street Exs the most patriotic people in America. Hell, it could even pay for that so called “jobs” bill Mr. Reid is forcing upon us.

  2. proreason

    uh.

    Could a fed funds rate of less than 1% have anything to do with banks making big bucks?

    Isn’t that like selling stuff that costs $0 to make, stuff that people have to have, by the way. Just to spell that out in more detail…..the banks buy money from the fed at 1/2 of 1%, and charge you 18% and up (plus fees) for every dollar on your credit card. The banks eek out a profit on that, and the executives get giant bonuses. It’s tough work but at least it’s a job.

    Even Obamy could make money doing it…..if he was willing to stick with it for more than a couple months.

  3. BillK

    It’s a bitter pill because Barry started the class warfare battle, and now people believe it.

    No matter how much Wall Street pays back or deserves what they get paid they’ll forever be those “evil bankers.”

    You know, not unlike the way a certain someone once used the same “evil bankers” connotation as partial justification for trying to wipe adherents of a certain faith off the Earth as part of what you might call a “final solution?”

    I’m not saying Obama is a Nazi; what I am saying is demonizing “the bankers” has long been a favorite trump card used when trying to brainwash the masses into supporting your logically horrific policies.


« Front Page | To Top
« | »