Dodd Orders Treasury to Recover Billions in Wall Street Bonuses

[ABQCOWBOY]

http://www.foxnews.com/politics/first100days/2009/01/29/obama-calls-b-wall-street-bonuses-outrageous/

FOXNews.com
Thursday, January 29, 2009

The chairman of the Senate banking committee claimed Thursday that he would "look at every possible legal means" to recover billions in bonuses to Wall Street executives, after President Obama called the bonuses plain "outrageous."

The president reacted harshly Thursday to reports that corporate employees got paid more than $18 billion in bonuses last year.

"That is the height of irresponsibility. It is shameful," he said.

Sen. Chris Dodd, D-Conn., released a statement saying: "I'm demanding that the Treasury Department figure out some way to get this money back."

White House press secretary Robert Gibbs said the president told his staff that a report by the New York state comptroller about bonuses paid by the securities industry to its New York City employees was "outrageous."

Obama was meeting in the Oval Office with his new treasury secretary, Timothy Geithner.

Obama has said in the past that financial companies that have accepted federal bailout money should limit bonus pay, and Gibbs said Thursday said the administration is studying what it can legally do on the topic.

"Whether it's government or the financial system, we're not going to be able to do what is needed to be done to stabilize our financial system if the American people read about this type of outrageous behavior," the presidential spokesman told reporters. "I think it was the sixth-largest year of bonuses, and I don't think anybody that's opened their 401(k) statement has found out that this was the sixth best year for Wall Street."

Obama met on Wednesday with several corporate chief executives, many of whom have received generous pay packages. Two executives introduced Obama at a White House event, designed to lobby for swift passage of an economic stimulus bill now in Congress.

The Associated Press contributed to this report.


I am very happy to see that the President is trying to do something about this. He should take all measures possible as he promised the country that this would not happen when the bailout package was being approved. I hope my President stands true to his word on this.

[ninja]

I love it. The greed continues. And Congress' stupidity continues. Here comes Obama and the Democrats giving out even more money to even more greedy thieves. Good job "fast tracking" the next, latest and greatest bailout stimulus package.

Memo to Dodd: You are one of the biggest thieving scumbags in Congress. Good luck trying to get the money back. Try looking in your own pockets. They are filled with bribe money.

[peplaw06]

If I was the recipient of one of those bonuses, you wouldn't find me Mr. President.

This is so easy to be looked at favorably because most of the public doesn't get that kind of bonuses, but it sounds like socialism to me.

[trickblue]

It's very hard for the American people to understand how they must do without while these already rich scumbags add to their wealth from our own pockets...

I doubt the bonuses can be recovered, but Dodd has finally done something worthwhile in his long, crooked tenure...

Kudos Mr. Dodd... for once...

[bbgun]

Obama was meeting in the Oval Office with his new treasury secretary, Timothy Geithner.

Obama attacks greedy Wall St. types with noted tax evader mistake maker next to him. Dee-licious.

[Sasquatch]

We'll pass the TARP with no oversight, you guys dole out your usual bonuses, and then we'll react with mock outrage followed by resignation once the public realizes there's no legal recourse for recouping the funds.

[silverbear]

If I was the recipient of one of those bonuses, you wouldn't find me Mr. President.

This is so easy to be looked at favorably because most of the public doesn't get that kind of bonuses, but it sounds like socialism to me.

Uhhhh, no... these are the same folks gleefully accepting OUR money in the form of bailouts, and they're still gonna give themselves massive bonuses??

Nobody's saying they should NEVER get bonuses, just that they shouldn't be taking them when they're losing money hand over fist... let them get their businesses back to a point where they're profitable, THEN they can help themselves to a bonus...

I'm surprised at you, pep, I would have thought you'd be able to figure out that those bonuses are being funded with bailout money, i.e., YOUR money, and mine...

[SuspectCorner]

I think we may have found a reason to keep Guantanemo and Gitmo open. But no waterboarding of Wall Street bankers, please.

[silverbear]

. But no waterboarding of Wall Street bankers, please.

Let's not be too hasty about that, we might want to think it through... :D

[SuspectCorner]

Let's not be too hasty about that, we might want to think it through... :D

Paging Messers Yoo and Gonzales... hellooooooo! :D

[Jarv]

A few years ago I worked as an IT consultant at a commodities firm. They wanted to hire me to a full time position but I declined. One of the reasons I declined was the distance I had to travel to work, the other was the low salary they offered me. The benefits were great (much better than I have now), but the biggest selling point of the hiring manager was the year end bonus the gave out every year...about 20K average for my position.

Well, a friend of mine accepted the job after I declined and he indeed did the bonus in December of 2007. I haven't been in contact with him this year to see if he got a bonus.

The bottom line that this is common for IT positions in the trading/banking industry. The bonus's are not just for the fat cat big wigs of the bank. For some of my fellow IT peeps, this supplements their salary to bring it up to the level of non banking IT folks.

By know way am I defending these banks, I just wanted to give you folks some inside info on how some of these firms work.

[Jordan55]

Can we get our money back from California, while were at it?


http://www.ibdeditorials.com/IMAGES/CARTOONS/toon012809.gif

[joseephuss]

The bonuses don't even make sense. Most of the times a bonus is earned when the person or company meet certain incentives or goals. If the companies are seeking a huge bailout then how did their executives even earn a bonus? If they truly deserved the bonuses then they wouldn't need a bail out. It doesn't quite match up.

[JBond]

http://www.foxnews.com/politics/first100days/2009/01/29/obama-calls-b-wall-street-bonuses-outrageous/

FOXNews.com
Thursday, January 29, 2009

The chairman of the Senate banking committee claimed Thursday that he would "look at every possible legal means" to recover billions in bonuses to Wall Street executives, after President Obama called the bonuses plain "outrageous."

The president reacted harshly Thursday to reports that corporate employees got paid more than $18 billion in bonuses last year.

"That is the height of irresponsibility. It is shameful," he said.

Sen. Chris Dodd, D-Conn., released a statement saying: "I'm demanding that the Treasury Department figure out some way to get this money back."

White House press secretary Robert Gibbs said the president told his staff that a report by the New York state comptroller about bonuses paid by the securities industry to its New York City employees was "outrageous."

Obama was meeting in the Oval Office with his new treasury secretary, Timothy Geithner.

Obama has said in the past that financial companies that have accepted federal bailout money should limit bonus pay, and Gibbs said Thursday said the administration is studying what it can legally do on the topic.

"Whether it's government or the financial system, we're not going to be able to do what is needed to be done to stabilize our financial system if the American people read about this type of outrageous behavior," the presidential spokesman told reporters. "I think it was the sixth-largest year of bonuses, and I don't think anybody that's opened their 401(k) statement has found out that this was the sixth best year for Wall Street."

Obama met on Wednesday with several corporate chief executives, many of whom have received generous pay packages. Two executives introduced Obama at a White House event, designed to lobby for swift passage of an economic stimulus bill now in Congress.

The Associated Press contributed to this report.


I am very happy to see that the President is trying to do something about this. He should take all measures possible as he promised the country that this would not happen when the bailout package was being approved. I hope my President stands true to his word on this.

For Obama to say anything about fiscal responsibility is a joke. Particularly with Geithner sitting next to him.

Obama has surrounded himself with people that are multi-millionaires from bonuses earned in the private sector.

His hand picked Treasury Sec and head of the IRS can't even pay his own taxes and he wants to lecture the private sector about pay structure. Maybe it is a mental disorder.

Obama is spending trillions on socialist programs with no way to pay for them leading to massive debt.

Now if he had said he will only sign balanced budgets as President, he would have a lot more going for him. His rant yesterday was ridiculous in light of what Obama has done so far.

[sacase]

I don't see how they can recover the bonus money if it was written into a contract. Technically, the CEO bonues are liabilities that need to be paid. Good luck getting the money back, you would have to take me to court to attempt to get it back from me. While we are taking money back how about we reduce the salary of every elected official to 100k.

[JBond]

It's very hard for the American people to understand how they must do without while these already rich scumbags add to their wealth from our own pockets...

I doubt the bonuses can be recovered, but Dodd has finally done something worthwhile in his long, crooked tenure...

Kudos Mr. Dodd... for once...

So how far down the scale should that go? At what level should the government decide how much you earn?

[BrAinPaiNt]

I don't see how they can recover the bonus money if it was written into a contract. Technically, the CEO bonues are liabilities that need to be paid. Good luck getting the money back, you would have to take me to court to attempt to get it back from me. While we are taking money back how about we reduce the salary of every elected official to 100k.

I would not have a problem with the 100K situation. I think they already said that Obama's staff would not make more than 100k right now.

I liked when Ross ran and said they could keep the salary for the President if he won or put it towards the deficit. Said something along the lines of he was already had enough money and did not need that salary.

[JBond]

I don't see how they can recover the bonus money if it was written into a contract. Technically, the CEO bonues are liabilities that need to be paid. Good luck getting the money back, you would have to take me to court to attempt to get it back from me. While we are taking money back how about we reduce the salary of every elected official to 100k.

Lets "recover" all the salaries of all lobbyists over $50,000 and use those funds for a true tax cut for the middle class.;)

[BrAinPaiNt]

So how far down the scale should that go? At what level should the government decide how much you earn?

Who knows but something has to be done.

There is also something that must be understood. This would only be for those companies that receive bailout money. The others that don't take it would not be required.

[JBond]

Can we get our money back from California, while were at it?


http://www.ibdeditorials.com/IMAGES/CARTOONS/toon012809.gif

Who would pay for all the free social services for illegal aliens then? Of course living in Kansas, I should be responsible to pay the bills for a liberal utopia like California. It is the Obama way. Enjoy the change.

[JBond]

Who knows but something has to be done.

There is also something that must be understood. This would only be for those companies that receive bailout money. The others that don't take it would not be required.

Some must be done now, right? Isn't that how we got into this whole bailout business. We must do something.

So, to be clear. A CEO signs a contract 4 years ago that pays him a bonus based on performance. He reaches the goal 2 years later and the bonus is to be paid out over 5 years. You believe he should not be paid what he is owed based on his contract?

[BrAinPaiNt]

Some must be done now, right? Isn't that how we got into this whole bailout business. We must do something.

So, to be clear. A CEO signs a contract 4 years ago that pays him a bonus based on performance. He reaches the goal 2 years later and the bonus is to be paid out over 5 years. You believe he should not be paid what he is owed based on his contract?

If he did not do a bad job and the company did not take money from the government to bail them out...sure he should get it.

Other wise the money that was given to the companies should be given back.

You might want to look at it at a different angle.

This money that is being taken back is just the money the government gave these companies.

In other words...Say Joe gets a bonus of $1 mill in his contract...that is the company paying him.

However let's say the government gives Joe's company $1 mill in bail out money...the government is not giving that money for Joe's contract bonus that is not Joe's Money...the government is giving it to the company.

So when that money is paid back, it is basically paying back the money the government gave to the company and does not really have to come out of joe's pocket...the company can still pay old joe his money if they want.

Now this is for bonuses that came up after the money was given to the company.

The government is not giving the money to the company to pay some CEOs big bonuses...it is giving the money to the company to help stimulate production and keep jobs, not bonuses.

Hope that makes sense.

Now in the future that might be different but again...the Company does NOT have to take these bail outs. They can say...no thanks, like ford is saying now. BUT if they are going to take the money, they should be required to meet and agree to certain criteria.

[trickblue]

So how far down the scale should that go? At what level should the government decide how much you earn?

When did I say that? That's a mighty big leap you took there, 007. The answer is that they shouldn't... but there are special circumstances involved when they just got a bailout.

The rest of us are tightening our belts and they go on with business as usual...

[JBond]

If he did not do a bad job and the company did not take money from the government to bail them out...sure he should get it.

Other wise the money that was given to the companies should be given back.

You might want to look at it at a different angle.

This money that is being taken back is just the money the government gave these companies.

In other words...Say Joe gets a bonus of $1 mill in his contract...that is the company paying him.

However let's say the government gives Joe's company $1 mill in bail out money...the government is not giving that money for Joe's contract bonus that is not Joe's Money...the government is giving it to the company.

So when that money is paid back, it is basically paying back the money the government gave to the company and does not really have to come out of joe's pocket...the company can still pay old joe his money if they want.

Now this is for bonuses that came up after the money was given to the company.

The government is not giving the money to the company to pay some CEOs big bonuses...it is giving the money to the company to help stimulate production and keep jobs, not bonuses.

Hope that makes sense.

Now in the future that might be different but again...the Company does NOT have to take these bail outs. They can say...no thanks, like ford is saying now. BUT if they are going to take the money, they should be required to meet and agree to certain criteria.

I would have to say that the government should have never have gotten into the bailout business. Especially in the manner they did.

Because congress rushed this doomsday avoidance bill (TARP) through so quickly they\we will have to live with the consequences. The money the companies are paying out based on existing contracts is a tiny little drop in the bucket of The Great Bailout.

It is a dangerous road to go down, if we allow the government to set private compensation levels. Am I happy some of the funds are being used in that manner? No, it does not make me happy. There were better alternatives all along.

[peplaw06]

Uhhhh, no... these are the same folks gleefully accepting OUR money in the form of bailouts, and they're still gonna give themselves massive bonuses??

Nobody's saying they should NEVER get bonuses, just that they shouldn't be taking them when they're losing money hand over fist... let them get their businesses back to a point where they're profitable, THEN they can help themselves to a bonus...

I'm surprised at you, pep, I would have thought you'd be able to figure out that those bonuses are being funded with bailout money, i.e., YOUR money, and mine...This says that they got those bonuses last year right... The bailout was passed late last year, and even then it doesn't say in here that the bonuses specifically came from bailout money.

But then again, I'm against the bailout anyway. If these jagoffs want to pay themselves $18 billion in bonuses, and their businesses fail, then let em. JMO.

[JBond]

I would not have a problem with the 100K situation. I think they already said that Obama's staff would not make more than 100k right now.


Obama said they will not get new raises this year. Obama will not disclose what he is paying them currently.

[JBond]

When did I say that? That's a mighty big leap you took there, 007. The answer is that they shouldn't... but there are special circumstances involved when they just got a bailout.

The rest of us are tightening our belts and they go on with business as usual...

I'm with you to a point about us tightening our belts, but it is not the federal governments role to cap personal compensation in private industry.

These same government clowns just gave themselves a pay raise last summer.

[ABQCOWBOY]

And this is exactly why the Federal Government has no business bailing out Commercial Entities.

To put it simply, they are just do dang stupid to understand what it is they are doing with our money.