What were bankers and Wall Street CEOs thinking? While $2.8 trillion in retirement savings vanished and $400 billion in taxpayer-financed loans were rushed to bail out troubled banks, financial executives gave themselves some $18.4 billion in bonuses.
Conspicuously, former Merrill Lynch boss John Thain spent $1.2 million to spiff up his Manhattan office, with, among other things, a $35,000 “commode on legs.” In January, Thain announced his firm had lost $27 billion. Bank of America then took it over with a $20 billion federal loan.
What he didn’t announce was bonuses of $3.6 billion to top Merrill executives, including at least $1 million each to 696 of the firm’s 39,000 employees. President Obama has blasted Wall Street chieftains and proposed a $500,000 salary cap for any CEO aided by the Troubled Asset Relief Program.
Populist anger may be getting through. Citibank, which received $45 billion in bailout funds, has canceled the well-publicized purchase of a $50 million private, 12-seat jet, and CEO Vikram Pandit said he was taking a $1 salary until his bank turned a profit.
Pandit and other banking executives traveled by Amtrak and commercial flights for a Washington tongue-lashing last month. Angry lawmakers included Rep. Michael Capuano, D-Mass., who said simply, “America doesn’t trust you anymore.”
Blair S. Walker, who frequently writes for the Bulletin’s In the News section, lives in Miami.
Tell Us WhatYou Think
Please leave your comment below.
You must be signed in to comment.
Sign In | RegisterMore comments »