Think the AIG bonuses were excessive? Remember the quickly arranged and dispensed TARP funds? How`bout Citigroup’s abuse of TARP funds? Pretty outrageous stuff. Corporate giants above the law, living like monarchs, on money made available by politicians, borrowed in our children’s names, kicking back to the legislators and entities that made the transactions possible…rewarding failed performance, underwriting lifestyles of entitlements and excess.
“Trickle-down” economic theory’s legacy is one of systemic abuse of checks and balances long ago gutted that ultimately endowed, rewarded and pampered those fortunate enough to be at the top but never trickled down.
Now this from Raw Story:
“Even as Merrill Lynch & Co. bled money and warily eyed a merger with Bank of America, company executives were preparing for a windfall.
Following the federal government’s promise of $10 billion in TARP funds to buoy the ailing firm through it’s roll-up, Merrill paid out $3.6 billion in bonuses: a package 22 times larger than compensation given by AIG, said Congressman Dennis Kucinich’s offices in a Monday release.
The congressman’s staff sent letters to Ken Lewis, CEO of Bank of America, Ben Bernanke, Chairman of the Federal Reserve, and Neel Kashkari, Interim Assistant Director of Financial Stability, requesting documents related to communications on Merrill Lynch compensation packages.
Bank of America, which absorbed Merrill in 2008, received an additional $25 billion from the government to facilitate the merger. ”
This one mighty big onion. As we peel back each layer, we find that being a dominant world economic power has a down side. Neighbors near and far disparage our reckless policies and worry about their long-term impact on the global economy.