New Bank Tax errrrr "Fee"
There is outrage to be found here
“My determination to achieve this goal is only heightened when I see reports of massive profits and obscene bonuses at some of the very firms who owe their continued existence to the American people,” Obama said at the White House. “We want our money back, and we’re going to get it.”
From almost all the banks to Obama, "YOU GOT YOUR MONEY BACK." Many of us were forced to take the TARP funds and now you're telling us after we repaid you plus interest that you weren't paid back properly?
Let me restate for those that don't know the true timeline. In the fall of 2008, many financial firms were told that only the strongest banks would qualify for TARP, so if you wanted to prove to the world and the market that you were a strong bank you needed to submit to TARP standards and get money from it. Strong banks did that, only a month later when the public soured on TARP the banks were all made to look like GM or Chrysler as feasting at the public trough. We therefore rushed to payback the "loan" from the government and most banks did as soon as they were allowed to.
This is not about "getting your money back." This is raising taxes in the form of fees so the 1.5 TRILLION deficit the fed will be running, without including Obamacare, in 2010 won't seem so bad.
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4 comments:
Banks aren't doing themselves any favors by setting records for biggest bonuses ever paid right after setting records for the worst performance ever.
Brilliant way to scrounge up some loose change by the Obama administration who will diffuse the angst over the 'fees' by pointing to the bonuses.
Remember this when someone brings up the 'pay for performance' debate.
In my opinion, bankers deserve whatever bonuses and raises they can get.
Whether or not they needed the TARP money in the first place, many of them have paid it back. It's done. It's over. Free and clear of the bonds of debt.
Why should there be any further action from the gubmint?
This idea that profits are too big and bonuses are too high is laughable. We earn what people are willing to pay us in this country.
For those firms that still have unpaid TARP funds, I can definitely see reason for complaint, but even then, it's a loan at the end of the day. From a PR standpoint, a firm that still owes TARP money would be wise to pay it off first before dishing out bonuses. But to the extent that they have the means to pay their people handsomely for the work they've done/are doing, then they can/should do it -- and they are. Good for them.
I think it is clear, after last nights Jazz/Cavs game that LeBron James is overpaid. Congress should take some of his excess profits and give them to Sundiata Gaines.
If you don't want banks to pay large bonuses, watch what happens to Citi over the next few years as they are constrained by what salaries they can pay.
When your firm's profits are tied entirely to your human capital and you can't pay for the top talent on the market then you have the Pittsburgh Pirates.
A no-talent team that is playing out the string starting around April 20 each year.
Goldman is like the Yankees, they can and do buy the best talent on the market and they have incredibly skilled traders that are very good at what they do.
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