Democrats & Liberals Archives

Bonuses for Economy Destroyers

Huge financial corporations, such as Goldman Sachs, have gambled away our money with financial transactions none of us understands. They outsmarted themselves and were on the verge of complete failure, when we, the people, bailed them out. This was done to prevent a total collapse of our economy. But these financial people still believe they are not ordinary people. They believe they deserve tens of million and even hundreds of millions of dollars in bonuses.

Mr. Blankfein, CEO of Goldman Sachs, who has received a bonus of about $68 million in the past, is in line to possibly receive this year a bonus of $100 million! Unbelievable!
But here is what the Times Online reports:

Mr Blankfein took home his biggest bonus so far in 2007, when he was paid $67.9 million. Goldman’s profits last year were $1.8 billion higher than in 2007. This leaves the bank with a justification to pay him even more although payouts will be made in shares rather than cash to make them more politically palatable. Some rival bankers claim Mr Blankfein could receive up to $100 million, though even a much lower figure could prove politically explosive.

The fact that he just about destroyed the company and the economy, and the government had to rescue the company, does not seem to matter. Give the CEO $100 million.

How much of a bonus do you get? Do you even get a bonus? Do you even have a job? You and I not doing very well is not as bad as CEO Blankfein not getting a $100 million bonus. You know, this is fair and balanced.

Maybe the situation is not so bad. Because of the political situation, perhaps Blankfein will not get the whole $100 million. So says Alan Johnson, a Wall Street compensation consultant:

Johnson estimated that Blankfein will get a bonus of more than $40 million for 2009, a year in which Goldman reported record earnings of $13.39 billion.

Devastating! How on earth can Blankfein get along on only $40 million? This is a reduction of $60 million! The reduction is more than the amount he will get. Terrible. Let's start a collection to help poor CEO Blankfein. But then again, maybe he will get the full $100 million.

Republicans are outraged that President Obama wants to cap the pay of CEOs like Blankfein. Here are a few Republican reactions:

Senate Minority Whip Jon Kyl: Because of their excesses, very bad things begin to happen, like the United States government telling a company what it can pay its employees. That's not a good thing in America.

Sen. Mel Martinez:
What executives have done is troubling, but it's equally troubling to have government telling shareholders how much they can pay the executives.

Sen. James Inhofe
.......as I was listening to him make those statements I thought, is this still America? Do we really tell people how to run [a business], and who to pay and how much to pay?

No matter how greedy financial CEOs are, Republicans are on their side. No matter how bad it gets for working people, Republicans don't give a damn. Every time Republicans are asked to help ordinary workers through a stimulus bill or through a jobs bill or through a home-foreclosure bill, they say NO. They want tax cuts for the rich financial people and nothing for the poor and middle class workers.

And yet, the Republicans bamboozled the ordinary people to decry Obama and his progressive policies and to adopt the help-the-CEOs of the Republicans.

Time to wake up. If you are not rich, don't vote for Republicans who favor the rich against the rest of us. Democrats are not perfect in this respect. But they are more concerned with the needs of every day Americans than Republicans are.

We don't need bonuses for economy destroyers. We need money to help ordinary people get good jobs. Vote for a Democratic representative and a Democratic senator who will help President Obama improve the economy for ordinary Americans.

Posted by Paul Siegel at February 2, 2010 8:05 PM
Comments
Comment #295026

Paul
It is amazing how the Reps are trying to blame shift the Republican Recession on to BHO. Poor Obama had to take steps to shore up the financial industry even though it is unpopular and the Rep spin machine took full advantage. Now they are getting set to battle any attempt at riegnning in the Financial industry that got us into this mess to start with.
The biggest contributers to the Brown campaign in Mass. were not the health insurance companies, but the financial industry.
It will be interesting to watch the Reps try and defend rapaceous bankers from regulation while attempting to maintain populist sentiment. I have no doubt they can do it,taking full advantage of the blowhard rascist teabaggers etc.

Posted by: bills at February 2, 2010 11:25 PM
Comment #295028
This also means you may not criticize categories of people who visit and participate at WatchBlog (e.g. All Democrats are commies or, All Republicans are idiots).

Huh…

Posted by: Rhinehold at February 2, 2010 11:29 PM
Comment #295031

Paul,

You forgot to mention Freddie Mac and Fannie Mae million dollar bonuses… or the bankrupt newspaper management receiving million dollar bonuses as their papers go into bankruptcy. Oh, yeah, those are liberal bastions. I forgot.

The problem with your philosophy Paul, is that after you outlaw the rich only the government and its leaders will be rich. Then where will you hide from the oppression of the ‘rich’?

Posted by: eric at February 2, 2010 11:51 PM
Comment #295034

Paul,

Goldman has flatly denied this rumor about a 100 million dollar bonus. Let’s not gripe about rumors. That doesn’t help either side.

Posted by: gergle at February 3, 2010 12:08 AM
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