It is not the responsibility of the Federal Reserve – nor would it be appropriate – to protect lenders and investors from the consequences of their financial decisions. ~ Ben Bernanke, March 2007
Funny Cartoon Animation: What is Quantitative Easing (print more money) and why Ben Bernanke referred to as the Bernank ... http://www.youtube.com/watch?v=PTUY16CkS-k
When senior figures in banking refer to their pay as "compensation", you wonder exactly what they are being compensated for. Perhaps it's the stress of having to suppress knowledge of the other issue kept under the carpet:how the economy, dancing to the tune of finance capital,is gambling, badly,with the stuff of life ...
70 months and counting ...
Reckless practices in the banking and oil industries are tying us together in what Ban Ki-moon calls a 'global suicide pact'
http://www.guardian.co.uk/commentisfree/cif-green/2011/feb/01/70-months-counting-climate-change
How much is enough?
Do not expect the compensation paid to investment bankers to change
by Tony Pereira
Never mind that Goldman Sachs had to rely on the taxpayer to underwrite their clearly flawed business model, it still felt justified to award US$15.3 billion in pay and bonuses to their staff in 2010. Their revenues fell 13% in 2010; their compensation to revenues ratio increased from 35.8% to 40% in 2010. The average salary and bonus per employee amounted to US$430,000. Morgan Stanley also increased their average compensation by 8% in 2010 but at least their profits tripled. Jamie Dimon at JPMorgan Chase has been awarded a bonus in stock worth US$17 million. Other investment banks are expected to announce increases in overall compensation in 2010.
Investment bankers are a special breed. They are confident; they are articulate. They dine in the best restaurants; they fly business class. And when business goes south, when they make the bad investments (subprime, commercial real estate, etc) they look to the state to bail them out. You see, pure investment banks do not have their own money. They borrow from the short-term markets and trade and make investments using other people’s capital. That is why Lehman Brothers went bankrupt. That is why during the financial crisis, the US regulators tried desperately to engineer a series of mergers with commercial banks. That is why Merrill Lynch is now part of Bank of America.
Distasteful as it is, do not expect the compensation demanded and paid to investment bankers to change. It is the nature of the industry. It is their right. And whether your name is Barack Obama, David Cameron or Angela Merkel, no legislation, bankers’ tax or any other tax is going to deny them their huge bonuses.
Six-figure bonus cheques were met with disappointed faces rather than grateful hands.
http://www.sun2surf.com/article.cfm?id=58118
