Bailed Out Banks: US Should Follow Europe’s Lead
Written by: Tom Sawyer
Europe is united – something unusual – in sending a message to banks concerning bonuses. Britain and France’s leaders are embracing a one-time tax on large bonuses paid by bailed-out banks. This is something that goes far beyond what banks are doing here in the United States.
Noting how the money to bailout banks came from taxpayers, British Prime Minister Gordon Brown and French President Nicholas Sarkozy both came out in favor Thursday of slapping higher taxes on performance pay. Is this something our government is willing to do or will lobbyists prevent [wink] it from happening. I’m not sure, but some American banks are doing the right things on the surface.
Goldman Sachs, the elite investment bank that repaid its $10 billion in bailout funds earlier this year, said it will not give cash bonuses to its 30 top executives. Instead, the executives will be given stock that cannot be cashed in for five years. To me, if bailout money propped up Goldman Sachs and indirectly caused stock prices to rebound, what is the difference? I guess they can’t buy their husbands and wives that Lexus with the big red bow on it like the commercials.
Regardless of direct or indirect payments to executives, Goldman Sachs is a force on Wall Street and their actions will put pressure on other banks to follow suit or do something similar. Still, things have recovered fast enough to allow those executives to breathe a sigh of relief. The house in the Hamptons is safe.
Tags: bailed out banks, bonuses, European banks' bonuses taxed, Goldman Sachs pays stock bonuses
December 12th, 2009 at 6:51 pm
Another tax in Europe, isn’t that why we broke away from them? Doesn’t the govertment understand that the more taxes they impose on companies will only hurt the little people. The whole robin hood story was a great story but that’s just not how things work. The same people drafting these laws and getting them passed already know the loopholes for the banks and companies to take advantage of. Things are not going to get better until people start taking accountability for their actions, let big companies fail. Stop buying houses you can’t afford and stop charging things you know you can’t pay back in a practical time frame.
December 14th, 2009 at 8:16 am
Tom, I could almost repeat my last comments I just wrote about the Health Care Reform. This is very informative and after watching President Obama last night, it is clear, he is very disgusted with bailed out banks big bonuses! (say it fast five times, lol) He could not believe and little peon me certainly cannot believe, in such a short time after being bailed out, these banks would do what they are doing…. again!!!
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