Is the US Bailout a Fraud ?

[BrilloPad]

Observation : Deception and Fraud : Welfare for City Executives

Goldman Sachs is on course to pay its top City bankers multimillion-pound bonuses - despite asking the U.S. government for an emergency bail-out.

The struggling Wall Street bank has set aside £7billion for salaries and 2008 year-end bonuses, it emerged yesterday.

Each of the firm's 443 partners is on course to pocket an average Christmas bonus of more than £3million.

The size of the pay pool comfortably dwarfs the £6.1billion lifeline which the U.S. government is throwing to Goldman as part of its £430billion bail-out.

As Washington pours money into the bank, the cash will immediately be channelled to Goldman's already well-heeled employees.

News of the firm's largesse will revive the anger over the 'rewards for failure' culture endemic in the world of high finance.

The same bankers who have brought the global economy to its knees seem to pocketing the same kind of rewards they got during the boom years.

Gordon Brown has vowed to crack down on the culture of greed in the City as part of his £500billion bail-out of the UK banking industry.

But that won't affect the estimated 100 London partners working at Goldman Sachs's London headquarters.

The firm - known as Golden Sacks for the bumper bonuses it pay its top bankers - is expected to cut the payouts by a third this year. However, profits are falling much faster.

Earnings have plunged 47 per cent so far this year amid the worst financial crisis since the Great Depression.

"Gordon Brown has vowed to crack down on the culture of greed in the City"

But GS is American? What can Gordo do? Apart from talk nonsense that is.....

[Pondlife]

Linky? (or it's not true)

[DiscoStu]

"Gordon Brown has vowed to crack down on the culture of greed in the City"

But GS is American? What can Gordo do? Apart from talk nonsense that is.....

He's trying for the entrance exam for the AtW economics club.

[Central-Scrutiniser]

Observation : Social Econmoics - Excess and Rewarding Failure


Former HBOS boss on £60,000 a month from Lloyds to help in takeover



THE former chief executive of HBOS has been given a lucrative consultancy role with Lloyds TSB.

Andy Hornby will take home a reported £60,000 a month to assist in the takeover of HBOS after the government's nationalisation of several High Street banks.

News of Hornby's appointment – and the massive salary he is being paid – provoked an angry response from MSP Alex Neil.

In a statement today, the Central Scotland MSP said: "If this is true, it stinks to the high heavens. Hornby is the chief negotiator for HBOS shareholders in the proposed takeover by Lloyds TSB.

"How can HBOS shareholders be sure that Hornby will try to get them the best deal in the takeover talks if he is getting paid such a huge sweetener by Lloyds TSB.

"I am writing to the Financial Services Authority to ask for an immediate enquiry.

"There is a clear conflict of interest here which calls into serious question Hornby's ability to meet his statutory judiciary duties to HBOS shareholders