This is a lovely article:
http://finance.fortune.cnn.com/2011/01/30/money-for-nothing-at-goldman/
This is absolutely the job I need to have. The very first paragraph says it all. It is clear that Goldman has not learned anything from the financial crisis. Except how to take advantage of the rules for their benefit. In some respects, I blame the government for thinking that the new rules would change the behavior that is so engrained on Wall St. It just seems too easy for these companies to find ways around regulation. It also seems that anytime some piece of solid legislation is introduced, these companies lobby hard against it, and eventually get their way. So I ask; Who is really running our government? Because I am sure that this behavior is pervasive at every level of government in this country.
Thanks for posting another great example of why I hate the relationship of business and politics. Big business is practically in bed with our politicians. We, the American people, are forced to bail out companies that don't deserve to be in business because of poor practice. They receive bailouts paid by OUR taxes, use loopholes to get around paying every cent they can to the governement, and proceed to line their pockets with OUR cash, while politicians merely look the other way. Only in America right?
ReplyDeleteNothing will change with big business until we change the structure. The behavior is not right. Can policy change these practice? I'm not sure what the right course of action is.
ReplyDeleteI find it flat out sickening that there are people in this country that make that much money. With the economic hardships facing so many people today it is hard to believe that someone can go to bed at night knowing they are making 2 mil a year while there are hundreds of millions of people, including many kids, without a home and going hungry for the night. I would like to think that people making this much money would donate a good portion of it, but at the end of the day it is their money and they have the right to spend it how they please. I apologize for the rant. I know this is Public Finance, not ethics class but I couldn't help myself.
ReplyDeleteIt's pretty bad that I'm not even surprised one bit about these increased salaries and ridiculously high bonuses- typical big businesses in America. This article portrays a good example of the uneven wealth distribution that our country faces. It would be nice if the top-income portion of our country could donate a good amount of their money; but, like Dave said, it's their money, and they can spend it however they wish. I know if I made that much money, I would feel obligated to give back to society, especially considering the state our economy is in right now. But, it's easy for me to say that now, when I'm not completely wrapped up in a luxurious lifestyle like so many of America's top earners.
ReplyDeleteThose bonuses are just flat out ridiculous at the end of each year. $12.6 million each to the top 5 of the company at Goldmans? Can't they figure out a better way of distributing $63 million dollars every year than to make the rich richer? These guys are making almost two million a year and get bonuses like that, while thousands of individuals in blue-collar towns are being laid-off due to company shrinkage. Don't you think such an elite company with high dividends can do something to help them out rather than provide bonuses to the wealthy that they do not necessarily need?
ReplyDelete"But lucky for hot shot banking types, the big issue with banker pay nowadays is not linking pay with performance. It's keeping the bankers from blowing the economy up again."
ReplyDeleteBankers are behaving like myopic unsustainable scourges who will not behave for the good of the market unless they are paid to? Something is incredibly wrong with our financial system. I feel like this money could have been so much more efficiently allocated such as paying back the bailout dollars sooner, or maybe even *gasp* giving the shareholders a bigger return to help stimulate the economy.
what a interesting balance of morality and finance.. There aren't many companies doing well in the US, but it's hard to root for the big coorporations if this is how they're going to behave. I can't get over the fact that they've taken BILLIONS from our government in bailout money, and are so ungrateful to behave this way. Again, more focus on ethics here, but in my understanding, karma is a drag and I don't think companies that operate with such poor morals are deemed to last long
ReplyDeleteIt's sad to see how some big businesses are spending this bailout money. I agree with Laura, we all know that this behavior is not right, but how do we stop it? I think there is a little more than to it than implementing new structure... I mean it seems like big businesses will always find these loopholes. Business ethics, if only there was such a thing...
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