As it turns out, Wall Streeters are still getting paid bonuses with a portion of the money, with estimates running into seventy billion. If you do the math, thats ten percent of the bailout that should go to helping the economy, just going right back in their pockets.
Also, AIG reportedly scheduled a lavish retreat for its employees, costing upwards of 400,000. This came right after it received the money from the bailout bill. There was another one planned soon after, but that was squashed right after the press got a hold of the story.
On the bonuses point, some of the company's employees are receiving more money just to stay on for one year, shouldnt keeping their jobs be enough reward, especially when everyone else seems to be losing theirs?
What happens to the millions of dollars that was lost by failed CEO's? Well, they get to keep it, as compensation for what they made when it was working.
As it turns out, banks can use the money any way they want to. There are no specifications as to what they must do with the money, so some are planning on buying up other banks instead of re-investing it back into the economy. They are not thinking of adding their millions to the lending pool so they can make more loans, they are thinking of using it for selfish terms.
Whos the real money makers, well lawyers of course. They are making huge amounts on billable hours because of the bailout, not to mention representing the firms that are now having problems with regulators.
1 comment:
The bailout will take well over 6 months before any signs of positive change (if any) occurs. There is still the typical misuse of funds and golden parachutes being used by government funds. I share your opinion; but remember, just because they get money does it mean they will spend it wisely...
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