Today the CEO's of the biggest banks in America were before Congress and were questioned on how the money that they received from the first bailout was used. While some were hoping for some more intense questioning it was more of a "slow burn." Taxpayers are outraged for paying for bailing out theses banks after their poor financial decisions especially since in the past couple weeks it has come to light that these banks are still giving out bonuses and having Super Bowl parties. The banks say that none of the government money was used to fund these events or bonuses. (http://www.nytimes.com/2009/02/12/business/12bank.html?_r=1)
My question then is even if it isn't government money that you are using why are you using money that is yours? If you need to have support to stop from going bankrupt you shouldn't be spending money on bonuses. The banks give the argument that they are giving out bonuses to retain their top staff otherwise they would flee and not have any incentive to stay. Where are they going to go!? Companies are cutting drops left and right, especially financial institutions, why would any sane person quit their job in a time like this? Now I am all for rewarding those who deserve it but when your company is getting bailed out, you should not be rewarded. Especially CEO's, you drove your company into the ground and should not get compensated for that.
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Every week there are a few more banks failing, the latest in Oregon. I don't know that FDIC means much anymore.
ReplyDeleteHarry Truman was called,"Give 'em hell Harry".
ReplyDeletePres.Truman said, I don't give 'em hell. I just tell the truth and they think it's hell!
Keep up the good blog,
LD Chase