Terry, I am not as sophisticated as you when it comes to banking practices but I know a mess when I see one. It seems to me that if any bank has to panhandle the American taxpayer for working capital to cover its own mismanagement, then that same American taxpayer should have a shot at jobs with that bank. I think we have plenty of unemployed people who possess the skills and desire to work for these banks at competitive wages.
George, it is a mess no doubt.....but the entirety of an industry is being demonized as if they were solely to blame for society's ills.....that's just plain bullsh!t. Further, these firms and the individuals that work for them are all being painted with the same broad brush that applies to AIG, Fannie and Freddie,etc. That too is bullsh!t. Let's not get caught up in revisionist history here......these banks did NOT panhandle the US taxpayer....that was the automakers. These banks were literally held virtual hostage in a room with former Secretary Paulsen and current Secretary Geithner and in very forceful tones informed that the capital injections and their terms were not voluntary. That indeed they would take the TARP money and like it. I have heard from a very reliable source that the bankers - most vocally Kovacevich and Dimon, but there were others - wanted nothing to do with public money. That was not an option...... As it relates to the employees, lets also clarify that by and large, these people are not tellers who stand across the counter from you, take your money and hand you a receipt. These in large part are highly educated, very bright, motivated people with very specialized skill sets......you cannot take a guy from the dirty water hot dog stand and make him a cracker jack crude oil futures trader or expert in corporate finance advisory work......and to be clear there still exists meaningful demand for their services from a number of different areas with deep pockerts.....be it hedge funds, private equity firms, sovereign wealth funds, pension funds or private entrepreneurs salivating at the prospect of stealing great talent on the cheap and starting their own firm......I promise you, it is inconceivable to me that the taxpayers money is better served by sending these guys across the street just because we're angry......angry is ok, but just becuse you're angry is not a compelling reason to blow your brains out........
Hey...that sounds like me and I'm available but I decided if I can't get my personal use of the corporate jet when I retire factored into the contract I'm not signing up....
If you're Sandy Weill you could.....frankly it is not at all unusual for a retired CEO to be given use of the company plane and office expenses and if the guy is or was any good, it's probably a pretty good deal for the company, imho.
.....and not a one of them has anything to do with the issue of Wall St bonuses. The only time anybody at those banks saw Wall Street was on TV or in the movies.....maybe a tour bus.
So we're talking about Wall St. Banks. Like Citi? How about Lehaman? Goldman Sachs? Yeah, they're rock solid.
No, they are not. But they are still open for businesss competing to service exiting clients and attract new business. These are extraordinary times calling for extraordinary efforts on the part of their people.....I can't think of a better way for them to fail and take taxpayer money down the crapper with them than by not keeping the very people best suited to perform in a superior fashion.