Wall Street walked into the path of its own oncoming stupidity. Of the $700 billion in Treasury rescue money, as much as $70 billion could go to bank and brokerage bonuses.
According to The Guardian, "Financial workers at Wall Street's top banks are to receive pay deals worth more than $70bn (£40bn), a substantial proportion of which is expected to be paid in discretionary bonuses, for their work so far this year." The paper goes on to say that the Morgan Stanley (NYSE: MS) pool is large enough to buy the entire company when its stock was at a recent low.
Although this information get filed under "things you can't make up," it will probably have such a severe backlash that Congress will run hearings until the bankers have exhausted the extra money they are making on legal fees.
The contrary argument to punishing the firms is that some of the people getting big pay-outs work in departments that actually contributed huge sums of money to their parents.
If the management at these firms has any sense at all, they will pay nothing to the staff who worked in operations that lost money and file with the SEC to show the amount of operating income made from the operations where people are getting an extra check.
There will be hell to pay either way.
Douglas A. McIntyre is an editor at 247wallst.com.











Reader Comments (Page 1 of 4)
10-28-2008 @ 6:46AM
c.e.stokes said...
Why,is there a plot to kill Obama but, none to kill these dirty bastards???! it just shows how ignorant these skinhead wingnuts are!!!!
10-28-2008 @ 8:08AM
Dewey said...
Why are these crooks being rewarded for stealing peoples money? thats like wells fargo rewarding
frank & jesse james for robing there stage coaches
this country is gone to the DOGS. Fatcats and swine.
10-28-2008 @ 8:46AM
faye soth said...
I don't think it is fair for them to get a bonus after being bailed out to help out americans when they they already get more of a paycheck than 10 average working people combined. They should be held responsible for paying what they have already spent on things not related to helping the americans or we should just closed them down and they will feel what it is like after awhile on not having enough to feed family and place to sleep. but what do they care!
10-28-2008 @ 8:43AM
mike said...
The bailout went, in part, to maintain the quality of life of those WallStreeters who in part caused this crisis. When the middle class loses work our 'bailout' is unemployment is $303 a week - UNEMPLOYMENT. When Wallstreet loses work it's they get 5 and 6 figure TAXPAYER PAID 'bonuses'.
10-28-2008 @ 8:59AM
David Peavy said...
This is unbelievable....bonuses? The bail out money should NOT be used to pay bonuses. I don't care what promises were made....these people are lucky to have a job...they shouldn't be rewarded when the companies go bankrupt. Let the "talent" go to hedgefunds.... they may find out things aren't' much better there either.
Companies that go bankrupt usually have a tough time paying their employees...much less give out bonuses. Why should Wall Street be any different?
10-28-2008 @ 9:58AM
Denise said...
TO C.E. STOKES? What does this have to do with the skin heads that were going to kill Obama and 88 other people??? You're comparing apples to oranges. However, when congress voted to bail out wall street I thought there was supposed to be a stipulation that none of the ceo's would get raises or bonuses. Congress lied to us again!!! We should all petition Congress for this injustice of the middle-class people.
10-28-2008 @ 11:33AM
Goodylife said...
Unbelivable. These companies have three things in common. Profit and greed, profit and greed and profit and greed. Nothing has been mentioned about foreign banks like Fortis and ING. ING received a very large bailout by the Dutch govt. Millions of Americans dollars are invested in ING. Shouldn't you be reporting on that? Where there is smoke, there is a bailout.
10-28-2008 @ 10:21AM
poppyjim128 said...
Just another hand out from the Bush administration to his rich friends as we taxpayers will pick up the tab.
Mcsame doesn't think it's right for Obama to redo the tax code to make it the same as when Clinton was President. That would help the American middle class worker to survive this economy downturn but oh I forgot that if the rich got it then it would trickle down to millions of jobs like it has in the last 8 years-(to China).
10-28-2008 @ 10:22AM
victoria gale said...
yep. it's time, people. time for a revolution. the government and "friends" will always push until we start pushing back!! what are we afraid of? they'll tax us into oblivion? take away our homes, our cars, our retirement, everything?? guess what? we let them walk all over us because we were afraid to stand up to them... and they screwed us more, just because they could... it's time to take it to the streets - there's way more of us than them.
10-28-2008 @ 10:33AM
JJ said...
You have GOT to be kidding us, right? Bonuses for people who "raped" us in the first place? Surely the government can stop this!!! If not, I think there will be hell to pay up on Capitol Hill. I just can't imagine that these money hogs can reward themselves for putting the world's encomony on it's ass! Can NO ONE stop this Bush administration (ever) from all these wrongful doings?
10-28-2008 @ 10:41AM
John A Guentner said...
First the government should have fired the inept who caused this debacle. Not to do so is like giving matches to firebugs. Indeed, we have never learned a single thing from history!
10-28-2008 @ 11:37AM
Paul said...
The abuse of privilages is madness!! This government in no way represents "we the people". This is a "rich buddy" fail safe system. I'm watching them strip the American dream from the masses, by shipping all of Americas jobs overseas. Now they had the nerve to pull these stunts. I've lost all faith in Washington. This is no longer a democratic society. It's a "only money runs, only money wins" society. The lawmakers have become self centered glutonous pigs. Vote out every selfish vulture who forced this bailout on us! The Glass stegal act has not been put back in place. Nobody has been held accountable in a court of law. We the people have strict laws,rules & guidlines to follow, while rich egomaniacs are exempt from everything! Washington is now the center of the axis of evil & it is effecting the whole world! We the people need to take America back from the top 2% of the wealthiest parasites before they turn this into a 3rd world country! The bucket that we put the trillion dollars into still has all the same holes in it. They privatize the profits & nationalize the spending! Americans are getting the shaft!!!!!!
10-28-2008 @ 11:03AM
Richard Watson said...
Who in the HELL is going to bail out the MIDDLE Class, We are the ones that will be suffering the consequences of this quigmire long after these robber barrons are sitting on a beach in the carebian. What is going to become of this COUNTRY.
10-28-2008 @ 11:07AM
Ben Carlson said...
I'm afraid that I understand these executives: "It MAY be immoral, but it's not illegal" is one of their drones. That's why they own the government & legal system & news organizations. It's all way out of proportion & obscene. They celebrate by firing a few thousand people. & then they have a cute little 500K/50K/150K party. Oh, that's right, the rest of us are just jealous & have never really worked hard.
10-28-2008 @ 11:45AM
Paul M said...
The abuse of privilages is madness!! This government in no way represents "we the people". This is a "rich buddy" fail safe system. I'm watching them strip the American dream from the masses, by shipping all of Americas jobs overseas. Now they had the nerve to pull these stunts. I've lost all faith in Washington. This is no longer a democratic society. It's a "only money runs, only money wins" society. The lawmakers have become self centered glutonous pigs. Vote out every selfish vulture who forced this bailout on us! The Glass stegal act has not been put back in place. Nobody has been held accountable in a court of law. We the people have strict laws,rules & guidlines to follow, while rich egomaniacs are exempt from everything! Washington is now the center of the axis of evil & it is effecting the whole world! We the people need to take America back from the top 2% of the wealthiest parasites before they turn this into a 3rd world country! The bucket that we put the trillion dollars into still has all the same holes in it. They privatize the profits & nationalize the spending! Americans are getting the shaft!!!!!! The SEC is just as selfish. Do not put any money in their market till they enforce some rules. Esp the reg - sho proposals. People are allowed to short & "naked" short to infinity. There's no rules enforced. Nobody is ever held accountable for failure to deliver or running basher crews on Yahoo finance bulletin boards ...anything! You no longer know how many outstanding shares are in your stocks! It's easier to take them down then to bring them up! I don't even think the SEC shows up to work anymore! Fire all of them. These global corporate infatuated money mongers are ruining our lives. The value of our dollar is so weak, everybody else can come in & buy us. Esp our enemies!
10-28-2008 @ 2:11PM
joe lowry said...
Where is the anger about the AIG expenditures. Why are none of the politicians asking Why did this happen and who is responsible for it??
Paying these bonus is systematic of no one being held accountable. The press is part of screwing all of us. They are not asking key questions.
How can the price of gas be the same when oil was at $147.00 when the cost of oil is now approx at 60.00 per barrel ? Just goes to show it is business as usual in Washington. WANT CHANGE VOTE OUT EVERY INCUMBENT.
A VOTE FOR EITHER PRESIDENTIAL CANDIDATE IS A VOTE TO CONTINUE SCREWING US. BOTH ARE TIED TO THE CURRENT ESTABLISHMENT.
WHERE IS THE COMMON SENSE THAT SAYS SOMETHING IS NOT RIGHT.
10-28-2008 @ 11:17AM
scottie godwin said...
this is a VERY good reason to replace all 435 of those nuts in congress. that would solve a lot of our problems
10-28-2008 @ 8:01PM
Dal said...
Paying bonuses out of the taxpayer funded bailout is totally unacceptable. That is rewarding failure with un-earned (by the recipient) money. I will take this up with Congress. I would advocate withholding/withdrawing taxpayer funding from any institution that pays bonuses.
10-28-2008 @ 11:51AM
Joe Thomas said...
What the people of the US need to do is vote out all these long term Congressman and senators and get Congressman and Senators in who are working for the people and not their positions. Limit the terms of the senators and congressman just like the President is limited to a 4 yr term.
10-28-2008 @ 11:52AM
losbubus said...
We ought to take legal action against things like these.As a democratic country we need to demand from our legislators responsibility, after all it is our money that they have loaned to them. Are they going to bail us out too when we need it?Not a single dollar for bonuses, it is an obscenity!!!!