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Bailout bonuses are actually hush money?
Just had another deep thought; are these bailout bonuses just hush money to keep the brokers from exposing those CEO's?
It would explain why those CEO's seem so impervious to public opinion, they would rather suffer the slings and arrows of outrageous criticism than have a gaggle of brokers running to the SEC with tales from the dark side.
It would explain why those CEO's seem so impervious to public opinion, they would rather suffer the slings and arrows of outrageous criticism than have a gaggle of brokers running to the SEC with tales from the dark side.
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You know, JEP, you have to wonder! Brilliant thought.
Sad too, eh? What a country we've become!
March 16, 2009 11:38 AM | Reply | Permalink
I've argued this elsewhere. I think you have nailed it. Same goes for massive "retention payments" at other bailed-out companies.
March 16, 2009 1:46 PM | Reply | Permalink
It looks more and more like there's a big can of works just waiting to be opened, if just one Congressperson on the right committee has the temerity and support to start the process of investigation.
Does ANYONE really think it would be unfair for us to subpoena these brokers? I can not imagine posing any resistance to an investigation, unless there's a vested interest.
Expect the usual concern trolls identifying themselves as they castigate us for suggesting those brokers shold all be subpoenaed.
I'm not saying we should do the first round on TV or even in public, but if under closed-door questiong, the dam breaks and the truth starts spilling out all over the place, it might be very refreshing to watch those CEO's squirm and holler "I plead the 5th" when their brokers tell the truth.
"Bush's base" is desperate to avoid that truth.
March 16, 2009 2:43 PM | Reply | Permalink
I do not think that your opinion is out of bounds here. Hush money. Extortion and bribery are two of the strongest weapons the corporate world has. And they never fail to use all weapons available.
Good point.
March 16, 2009 3:14 PM | Reply | Permalink
I do not think this opinion is out of bounds, either. It certainly makes one think.
March 16, 2009 3:29 PM | Reply | Permalink
I say: Go for it!
March 16, 2009 4:47 PM | Reply | Permalink
The "hush money" was allocated a year ago, as AIGFP was winding down its trillions in CDS etc.
People tend to jump ship on a declining operation. Retention payments are quite normal (I've received such in the past, when my small company got closed down after we were acquired).
Everyone is so hung up on "bonus". You're missing the big picture and being distracted from the real bonus issue of BAC/ML.
http://static1.firedoglake.com/1/files//2009/03/ny12532-_432294-v7-white_paper_-_aigfp_retention_plan.pdf
March 16, 2009 8:13 PM | Reply | Permalink
I feel such bonuses are just standard operating procedure. It would only be natural for CEOs to try and protect such bonuses as the CEOs themselves ALSO receive them. No CEO wants to help de-legitimize one of the most lucrative components of their own compensation package.
At the root of problem, as I see it, is that they were/are all engaged in a massive get-rich-quick Ponzi scam, not much different than what Bernie Madoff was running. One key difference between executive compensation and Bernie Madoff's scams, however, is that the executive compensation scam amounts to a wide conspiracy, while Madoff's looks to have been contained within his family.
Executive compensation is approved by the Board of Directors. Most CEOs are members of the Board of some other company while also being CEO of their company. CEOs vote for insane compensation packages in their capacity as Board member within one company, and such is done for them in their capacity as CEO of their own. Shareholders, employees, and now, taxpayers get screwed while executives get rich quick.
March 17, 2009 10:11 AM | Reply | Permalink
The more I think about it, JEP, the more I think you're right here. Even Josh on the front page seems to be coming to that conclusion: Hush Money!
March 17, 2009 10:18 AM | Reply | Permalink
I think my Myanmar monkey-trap scenario is growing ever more imminent. The brokers who get these bailout bonuses would have quite a story to tell if they are ever compelled to testify.
And I think Cuomo knows what I'm saying, which is why he wants a list of the Bonus Brothers. They are victims too, in a way, guilty victims, but victims none-the-less.
It was their CEO's who concocted and promulgated the scheme, and the more I look at it, the more it seems they were scheming to defraud the final owners of those mortgage packages from the start, and the homeowners were just tools to that effect.
The brokers are the key to that simple truth.
March 17, 2009 11:02 AM | Reply | Permalink