Wall St. Pursues Pay Loopholes

(…)
In response to expected bonus restrictions, officials at Citigroup Inc., Morgan Stanley and other financial institutions that got government aid are discussing increasing base salaries for some executives and other top-producing employees, people familiar with the situation said…..

The discussions are at an early stage, partly because the government hasn’t yet issued specific rules on the bonus payments that will be allowed at companies that received TARP aid. The talks also are proceeding cautiously because of the political volatility of pay, bonuses and perks on Wall Street, including outrage over American International Group Inc.’s promise to pay $450 million in bonuses to employees in the insurer’s financial-products unit.

Sounds a lot like a workaround to ensure financial pipeline if “public outrage” dries up bonuses.

Strikes me that if these fuckers had put 1/2 the effort in due diligence assuring soundness of their financial instruments as they put into ensuring they get paid no matter what kind of shit they sell… then we wouldn’t be discussing these bonuses nor a “financial meltdown” at all.

I should have mentioned (I didn’t see Summers interview, I’m relying on this article) that, after above Summers quote… “outrage” etc., he went on to say that…

Even as Mr. Summers was denouncing A.I.G. for the bonuses, he suggested that there was little if anything the government could do to stop them, seconding the conclusion of Treasury Secretary Timothy F. Geithner.

One can draw their own conculusion on BO’s sincerity in this matter.

(BO Admin officials) worried that anger at financial institutions could also end up being directed at Congress and the White House and could complicate President Obama’s agenda.

Lawrence H. Summers (…0) described it as “outrageous” on “This Week” on ABC — marks the latest effort by the White House to distance itself from abuses that could feed potentially disruptive public anger.

“We’ve got enormous problems that need to be addressed,” David Axelrod, Mr. Obama’s senior adviser, said in an interview.

Whole article is like that, and entire tenor… at least to me, seems more concerned w/”public perception” and attitude towards BO than any commitment to principle of any kind.

So this statement (eg: BO wants bonuses blocked) sounds whole lot like an extension of political maneuverings to manage perception to me. If he/they had any commitment to giving “haircuts” to those who most deserved it, it would have been expressed in recovery/TARP (or lack thereof) programs much, much different that what BO/Geithner have implemented.

AFAIC, entire BO communications apparatus did just that in period after election but before inauguration… eg. they flooded news/political programs w/”representatives” long on the tooth and very, very short on specifics. “The president believes this”, “the president believes that”… all image creating stuff w/very little since then of the right kind of substance.

The Merril bonuses paid after BofA merger… just as bad as this one. BofA CEO’s congressional testimony that those things were paid before BofA took over turned out to be smoke and lies. Why wasn’t BO moved to action on that one?

I’m very skeptical of this BO edict (block bonuses), it’s consistent w/his early PR management, and I expect little to come of it.

so, i await your response.

did ordinary fiduciary duty never bind upon any of these derivatives traders? … why can’t the USG demand they all be fired for cause, and then individually sued into oblivion for breach of fiduciary duty?

What “cause” exactly?
What “breach of fiduciary duty” exactly?

just tell AIG to GO FUCK THEMSELVES

take the bailout money back, let AIG die

and then let AIG try to find a sympathetic jury amongst America’s taxpayers

I’d love to see the opening statement for that trial

these assholes crashed the world economy, drove you into poverty, and caused world wide starvation and panic, and they are asking you the jury to award them millions of dollars for their efforts

the Defense rests …

You’d get kicked out of court by any decent judge and then disbarred.

The more people kick AIG the more I’m thinking Geithner is right to support them and their cruddy CDSs. I don’t know why, but when the ‘other side’ wants them dead the more I start thinking they’re the good guys (hard as that may be to see at the moment).

Obama IS a neoliberal market worshipper. He would just as soon cut Geithner (or Summers or Rubin) loose as chop off one of his own balls.

He’s corrupt. As corrupt as Bush, as corrupt as Cheney. Fully owned and operated by BIS.

Evidence? So far all you’ve got is that you don’t like the way things are going.

God the freepers and trolls are out bashing Obama something horrible. It’s one of those anus horribiluses things.

AIG must NOT pay bonuses. Period. End of story. NO corporation/bank that has received tax payer bailout money can be allowed to pay bonuses. Period. End of story. NADA!

Also, I want Bank of America immediately seized and liquidated.

I’ll bet you want a pony too.