Seems someone has some cajones to jump right in and look for some accountability over there on Wall Street. Granted, they have not launched a formal investigation as of yet, but as soon as they realize that the CEO’s of these banks are not going to willingly participate, I am sure a thorough investigation will be started. I even read that some of the bailout money was going to be used to buy banks, and NOT for it’s intended purpose of making loans. These people have zero shame.
The hot-bottom issues of CEO pay and the Wall Street bailout may soon collide with the real world of Wall Street bonuses, taxpayer and shareholder anger over the financial crisis, and a Treasury secretary with deep roots on Wall Street. And that collision could be loud and ugly.
The first salvos were fired late Tuesday when Rep. Henry Waxman, who chairs the House Committee on Oversight and Government Reform, disclosed that he sent letters to the first nine major banks set to receive a capital injection from the government, seeking information on their compensation and bonus plans for 2008 and other years.
“The corporate community doesn’t seem to get it,” says a seething Nell Minow, founder of the Corporate Library, which focuses on corporate governance issues. “If the corporate leaders don’t come to the American people with some accountability, they are going to find themselves in a world of pain. Congress will set CEO pay.”
Rep. Waxman’s letter cited reports about billions in bonuses and quotes an unnamed analyst as saying: “Had it not been for the government’s help in refinancing their debt, they [the companies] may not have had the cash to pay bonuses.”
However, Representative DeFazio from Oregon says that we the people are going to demand someone go to jail (nice try with the tough talk) – but you and I both know that will never happen. These kind of criminals just retire with millions more; they rarely go to jail.