Headline June 6th, 2012 / A Tale Of Two Worlds!

A Tale 
Two Worlds!

Special Dedication to the 'haves' and the 'have nots'

All too often, unfortunately, you heard the following argument: ''The system was: if we pay you 2 million for a job, it's because you helped us make 20 million.'' But what no one says to us all is that those profits were of short term sort, generated by risky securities, now turned to ashes and dust. Bonus bagging bankers may loathe to admit it, but the answer is obvious: tie bonuses to long term profitability. Have them vest in two years, maybe three. Meanwhile, keep them in escrow.

The question is: will the bankers stand for it? Peter Singer, a prominent bioethics Professor at Princeton and author of the newly published 'The Life You Can Save': Acting now to end World Poverty, suggests that bonus deprived take a hard look at themselves. ''How much happier does it make them to have 10million rather than 200,000?? .......So have they got enough from that salary to provide them and their families with the basics of what they need to live? And by that I don't mean a six bed room apartment on Park Avenue.'' For a lot of them apparently not. But the game is over, at least in Manhattan. ''The market for them is Mumbai, Dubai, Hong Kong, Singapore, Shanghai. We've been moving them out there for a year.''

High-fliers who traded the riskiest of securities, face a grimmer prospect. In his memo to staff, John Mack declared a new Morgan Stanley clawback policy starting with cash bonuses for 2008.
The policy is ominously broad: awards could be clawedback not just for risky trading that result in long-term losses but also for 'reputational harm to the firm'. At least the Morgan Stanley guys have cash bonuses, provisional though they maybe, for now.

And Credit Suisse, though not a TARP recipient, had bonuses one year as the same as toxic securities its bankers and traders had sold their customers. However, since the securities had already been market down to 65cents on the dollar, the value could only move up. But from the very recent past, 2010, A.I.G's Ed Liddy, got eligible for a ''special bonus'' for extraordinary performance. What was that to mean?? Nobody even TARP officials had a clue!?

But then,......but then, Alan Johnson, executive compensation consultant, broke the din, with obvious truth: ''if the government says you can't pay people who are successful, then game over!!'' Haha!

Many thanks to !WOW! Many thanks to Sam founders for every effort, and many thanks to the ever growing world, led by none other than, YOU HEROES!!

Good Night And God bless!

SAM Daily Times - The Voice Of The Voiceless


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