The Real Recovery | February 03, 2010 | 7 comments

B of A gets big bonuses; Gives middle finger to Volcker Plan

source: http://www.bloomberg.com/apps/news?pid=20601087&sid=axU2rx7fo4O4&pos=1

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afitzgerald
Bank of America's year is off to a great start. They're reportedly going to pay out an average bonus of $400,000 to investment banking employees. (Bloomberg: http://www.bloomberg.com/apps/news?pid=20601087&sid=axU2rx7fo4O4&pos=1)

Meanwhile, The Daily Beast reports that the "Volcker Rule" the Obama Administration is pinning its regulatory hopes on is being laughed off Wall Street. (The Daily Beast: http://www.thedailybeast.com/blogs-and-stories/2010-02-02/wall-street-laughs-at-...)

From The Daily Beast: "All of this has given the heads of the big financial firms—bruised by a vengeful public that can’t seem to accept how the firms are getting ready to dole out billions in bonus money just a year after being bailed out—something finally to snicker about, at least in the private conversations I am having with them. “Joke” is the most common word I hear coming from top Wall Street executives when discussing Volcker’s “reform” efforts.

“If Volcker thinks what he’s saying is going to stop another financial collapse, he’s crazy,” one CEO recently told me."


Are banks that are "too big to fail" impossible to regulate now? It seems like every quarter there's a new cycle of Big Bonus / Middle Finger To Regulator stories. Any good ideas out there you've heard?

Image: http://www.cbsnews.com/blogs/2010/02/03/business/econwatch/entry6169540.shtml
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7 comments // B of A gets big bonuses; Gives middle finger to Volcker Plan

  • pvelectric
  • pvelectric
    • 0
      pvelectric  
    • Image

    • Why aren't hese crooks thrown into jail, where they belong. The more the President and Congress persons refuse to prosecute these white collar criminals, the mor ethey themselves become co-conspirators and accomplises.

      Maybe the only way the American people will ever see justice is by overthrowing the federal governmenmmt! Voting is just a sham rigging by too parties, whose policies are virtually identical.

    • 2 years ago
  • jubal
  • QuestionGeek
    • 0
      QuestionGeek  

    • existentialist the only reason why a person would bank with Bank of America in this day and age is because next to the Federal Reserve Bank, they're the largest... well, largest Bank of America. LOL! (Sorry I just had to do that) This also makes them the one of the most stable banks in the world perhaps and the most convenient.

      We have seen the collapse of Home Savings, Washington Mutual, etc, It doesn't seem like Bank of America is going to the graveyard anytime soon

    • 2 years ago
  • existentialist
    • +1
      existentialist  

    • How come there hasn't been a run on Bank of America yet? After all the negative press I am surprised people still bank with them. All politics aside, I used to have an account through them (way before the the financial crisis) and their service and account choices were horrendous. I am with a regional bank now and I am very happy.

    • 2 years ago
  • Chique
    • 0
      Chique  
    • existentialist:

      Agreed, they're too big to care about service which their attitudes reflect. The hypocrisy of their ads . . . "We care about the little guy and are there to help. We understand people are having a hard time right now and we go out of their way to help them . . ." is hard to swallow. I banked with them for years and you're nothing more than an account number to them. We should have attached caveats with the bail out funds to start with. This article is the very reason bank regulation is critical. I'm hoping the public has the last laugh but I won't hold my breath.

    • 2 years ago
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