Andrew Cuomo wants $40 billion bonuses returned

[Texas]

I wasn't aware that Cuomo was suggesting that the money be confiscated by the government.

So he is going to keep it for himself?

 

[gdnp]

So he is going to keep it for himself?

I assumed he wanted it given back to the companies and used for investment purposes, or paid back to the government with cancellation of the associated preferred stock that the government got in exchange. Does it say otherwise somewhere?

 

[Texas]

I assumed he wanted it given back to the companies and used for investment purposes, or paid back to the government with cancellation of the associated preferred stock that the government got in exchange. Does it say otherwise somewhere?

The bonuses were paid prior to any government bailout and any recovery of those bonuses should be by the shareholders of Merrill Lynch through Shareholder suits. The Government did not buy preferred stock of Merrill Lynch nor does it hold any now.

 

[ponderingturtle]

Oh the takings clause of the 5th amendment for example

So we are adding jobs to the fifth amendment now? This will be making the country much more like france in terms of worker rights.

 

[ponderingturtle]

Even so, the working stiff making $35K is unlikely to be too sympathetic.

So to stimulate the ecconomy we need to cut everyones salary massively?

$35 if starting for many college degree's.

If they had a salary of $150,000 it wouldn't be news, and there would not be call to cut their salaries to that extent.

 

[KoihimeNakamura]

Pfft. $35K. I make at most $19K. No sympathy here. (I'm more going uh.. you took our money, why in the hell are you granting bonuses if you're going under?)

 

[ponderingturtle]

Pfft. $35K. I make at most $19K. No sympathy here. (I'm more going uh.. you took our money, why in the hell are you granting bonuses if you're going under?)

And my point was that the structure of the bonus's should at a certain level be thought of as salary and not bonus.

If you think that there should be conditions that no one can earn more than a certain amount in any company that received bailout money, say that.

With out bonus's these jobs often don't really earn salaries commensurate with the level of education required.

 

[Thunder]

Bankers should not be getting bonuses that they have not earned...especially when the American taxpayer is subsidizing that bonus.

I want my money back.

 

[ARubberChickenWithAPulley]

With out bonus's these jobs often don't really earn salaries commensurate with the level of education required.

But that is the risk you take when you get into a job whose compensation is significantly based on bonuses rather than salary. You're staking the vast majority of your income on performance -- both yours and the company's. When things are going well, you reap considerable rewards -- more than a salaried worker likely would. When they're not, you don't. That's the risk. If they wanted a job with a more stable income, they should have asked for salary instead.

They don't get to have it both ways.

 

[gdnp]

And my point was that the structure of the bonus's should at a certain level be thought of as salary and not bonus.

If you think that there should be conditions that no one can earn more than a certain amount in any company that received bailout money, say that.

With out bonus's these jobs often don't really earn salaries commensurate with the level of education required.

The problem I see here is that the $18 billion in bonuses paid out this year is probable larger than the bonuses paid out 5 years back, even after the 44% cut from 2007. The amount of bonus money paid increased astronomically over the past decade. If they wish the opportunity to reap windfall profits during good times, they should be willing to accept the chance of no bonuses in bad times.

It's like baseball players who demand $10 million a year after having one great season, but never agree to give the money back when they struggle the next year.

 

[shadron]

And my point was that the structure of the bonus's should at a certain level be thought of as salary and not bonus.

Only so long as you don't mind the perversion of plain English words:

bonus - something in addition to what is expected or strictly due; money or an equivalent given in addition to an employee's usual compensation.

 

[Texas]

So we are adding jobs to the fifth amendment now? This will be making the country much more like france in terms of worker rights.

No it is taking the bonus money.

 

[gumboot]

If the American people are stupid enough to bail out corporations with billions of dollars without purchasing any control over those companies, it's their own fault and they really have no grounds for complaining about how that money is spent.

When Air New Zealand was in dire straits the New Zealand Government fronted up cash to save it, but they also purchased a 76% stake in the company so they could dictate how that money was spent.

Likewise when the New Zealand rail network was on a state of collapse the New Zealand government put up a huge injection of funds to redevelop the network, but as part of that it bought back the entire network completely.

The same deal has been happening in Europe with nationalisation of struggling banks.

 

[Texas]

Pfft. $35K. I make at most $19K. No sympathy here. (I'm more going uh.. you took our money, why in the hell are you granting bonuses if you're going under?)

If you are really only making 19k I doubt seriously that anyone took "your" money.