Headline June 3rd, 2012 / Troubled Assets Relief Programme

"Troubled Assets Relief Programme"

Secretary Henry Paulson had taken the cabinet post in july, 2006, moved quickly to stem the meltdown. Through Troubled Assets Relief Program he propped up nine large banks with $125 billion in federal bailout, money.

For almost every U.S. taxpayer, the bailout was infuriating enough on its terms: $700 billion of public money in all, - which makes 5,073 for every taxpayer- given to wall street for bingeing on risky bets and pocketing the profits, living high and leaving the government to mop up the losses.

But.....bonuses! That was an incitement to riot! Haha! And so, Thain's missteps not withstanding, the top offficers at six large TARP-infused firms declared they were forgoing bonuses this year. The headlines were dramatic, and they seemed to work. Editorial writers held their fire, public outrage cooled.

But did all this falling on swords really mean no bonus season on wall street this year? No! It did not! For if one had to retreat, he might as well do it in great style! Haha! The first cause for concern came well before the formal bonus season. It was the much reported 440,000 junket to St Regis resort in California, enjoyed by 70 high performing employees of Insurance giant A.I.G.

The retreat which included 23,000 for spa charges, was held less than a week after the company was promised its first 85 billion from a TARP fund separate from the one helping the banks.

With this scenario on, Attorney General Andrew Cuomo started strategizing about how to stop what he would soon call ''unwarranted and outrageous expenditures'' Summoning A.I.G's new C.E.O to his office he demanded an immediate end to junkets. He threatened the company with legal action for ''fraudulent conveyances'': engaging in business transaction without sufficient capital on hand.

On Oct, 29, Cuomo went further. He wrote a letter to the boards of nine big financial firms - Goldman Sachs, Morgan Stanley, Merrill Lynch, Wells Fargo, Citigroup etc and expressed grave concerns about executive bonuses. So, does forsaking a bonus even matter when Goldman Sach's Lloyd Blankfeen earned 210,169,732 in total compensation from 2003 to 2007???! Haha!

Have a great weekend and don't miss the amazing posts to follow.

Good night and God bless.

SAM Daily Times - the Voice of the Voiceless


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