WTF Wall Street?

Those who have been skeptical of the big bailout, or The Splurge as some call it, had more reasons to be skeptical than they thought.  Congress puts us on the hook for a bazillion bucks and the schmucks on Wall Street may say, "Thanks, but no thanks."  From The Guardian:

Last Monday, after the bill was thrown out by the House of
Representatives, more than $1 trillion was wiped off the value of US
stocks as the market was gripped by panic. The bill was passed on
Friday afternoon, however, after the inclusion of $149bn of tax breaks
and strict rules for participating banks.

But Wall Street analysts, believe the addition of so many terms to the bill might deter potential participants.

One
of the least attractive elements is a section designed to curb
executive pay at banks that participate in the bail-out package. These
include limiting stock-related pay and banning ‘golden parachutes’ for
executives.

‘I think this hodge-podge of regulations and rules
will be enough to put many [chief executives] off participating,’
Caldwell said.

Sources close to Goldman Sachs and Merrill Lynch
indicated the banks might choose not to participate in the bail-out as
there is a growing view on Wall Street that the market may be bottoming
out.

Analysts also believe that the mere presence of the government as buyer
of last resort will be enough to get credit markets moving again, and
that a large number of banks would not need to take part for the
legislation to succeed.

In other words there’s the possibility that the pinstripe and wing tip set might find their balls and actually figure out a solution to the "impending financial doom" if their gilded lifestyle is seriously threatened.  Am I the only one who fantasizes about seeing these goobers seated around Al Capone’s conference table like in The Untouchables?  Forget taking away golden parachutes, let’s start playing baseball with these jerks.


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1 thought on “WTF Wall Street?

  1. AMR's avatarAMR

    Did you catch 60 Minutes this week? I’m all for the baseball bat on some of these guys.
    Here’s the text of the piece they did on the current crisis: http://www.cbsnews.com/stories/2008/10/05/60minutes/main4502454.shtml
    One analyst’s conclusion:
    “They already dwarf what has been lost on those original risky mortgages. As bad as the mortgage crisis has been, 94 percent of all Americans are still paying off their loans. The problem is Wall Street placed its huge bets and side bets with all of those fancy securities on the 6 percent who are not.
    “We wouldn’t be in any of this trouble right now if we had just had underlying investments in mortgages. We wouldn’t be in any trouble right now,” says Partnoy.
    He says it’s the side bets.
    “You got Wall Street firms, Bear Stearns, Lehman Brothers. You got insurance companies like AIG. Merrill lost a ton of money on this,” Kroft says. “Everybody’s lost a ton of money. They’re supposed to be the smartest investors in the world. And they did it themselves.”
    “They did it all on their own,” Partnoy agrees. “That’s the most incredible thing about this crisis is that they pushed the button themselves. They blew themselves up.”

    Reply

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