Business and Capital Market Analysis !!!

When confronted about these numbers, the executives will always claim that the bonuses are paid out of other funds and company earnings. This completely ignores the fact that without the taxpayers bailout money, there would be no earnings! If there was anyone left who still felt like the bailout was a good idea (besides the executives who directly benefit), this should be the final nail in the coffin that we were just robbed blindly while the politicians patted themselves on the back.

Paying Wall Street bonuses was not supposed to be part of the plan. At least that’s how Federal Reserve Chairman Ben Bernanke and Treasury Secretary Hank Paulson explained it to Congress and the American people. So, on Oct. 1, when the Senate, including Obama, approved the $700 billion bailout package, the illusion was that this would magically loosen the credit markets, and with taxpayer-funded relief, banks would first start lending to each other again, and then, to citizens and small businesses. And all would be well.

That didn’t happen. Which is why it’s particularly offensive that the no-strings-attached money is going to line the pockets of Wall Street execs. The country’s top investment bank (which since Sept. 21 calls itself a bank holding company), Goldman Sachs, set aside $11.4 billion during the first nine months of this year — slightly more than the firm’s $10 billion U.S. government gift — to cover bonus payments for its 443 senior partners, who are set to make about $5 million each, and other employees.

Two of those firms, Bear Stearns and Lehman Brothers, went bankrupt this year. Bank of America is acquiring a third, Merrill Lynch. Shares in the remaining two, Morgan Stanley and Goldman Sachs, took a 60 percent nosedive this year.

Yet, that didn’t stop their campaign contribution money from spewing out. Goldman was Obama’s largest corporate campaign contributor, with $874,207. Also in his top 20 were three other recipients of bailout capital: JP Morgan/Chase, Citigroup and Morgan Stanley.

Read the full article here. It’s worth also noting that Goldman Sachs was John McCain’s 4th largest contributor, just behind Merrill Lynch, Citigroup, and Morgan Stanley (source).

Source:
86% of Bailout Money Used for Executive Bonuses