Here's a novel idea for politicians yammering about Wall Street bonuses: stop accepting them!
President Obama
lashed out at
Wall Street fat cats who paid themselves billions of dollars in bonuses
last year, calling their practice "shameful," "outrageous" and "the
height of irresponsibility."
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It's hard to argue against this assessment. Wall Street bonuses last year totaled $18.4 billion -- a 44% drop from the previous year, but still the sixth-highest ever, according to New York State Comptroller Thomas DiNapoli. It is of course utterly despicable that executives are laying off workers by the thousands and going to the federal government hat-in-hand, while paying themselves bonuses of any kind -- least of all of the eight- or nine-figure variety. Sen. Chris Dodd, D-Conn., said that "every legal means" should be used to recoup the money from these scoundrels.
Good luck with that one.
But here's a better idea for the nation's lawmakers: How about leading by example and not accepting Wall Street money?
The "securities and investment" sector last year contributed nearly $142 million to political campaigns, third-most among all industries, according to the Center for Responsive Politics' OpenSecrets.org Web site (In case you're wondering, 56% went to Democrats, 43% to Republicans); $131 million of this sum came from individuals. That's about $130 million more than they would have contributed without bonus money.
To be sure, $140 million is still not a lot of money by Wall Street standards (at least not until recently; that may change). And some industries give as much, if not more, to political campaigns. Others may not give as much but are arguably even more nefarious than Wall Street (tobacco, "beer, wine and liquor," casinos/gambling and lawyers/law firms come to mind). Of course politicians might claim to have been ignorant to Wall Street's troubles when they accepted the donations or unaware to the origins of the money. For all we know, some of these claims might even be truthful.
But that doesn't change the fact that virtually all elected officials in the federal government have accepted sizable private donations from the very individuals they are now so incensed about. Talk is cheap; in this instance quite literally. If politicians are serious about changing Wall Street, they should start with the man in the mirror. That, more than anything, would show they mean business.
- Nathaniel Baker
Comments
Bailout Bonuses should be easy to recover. Simply honor the contracts and pay the bonuses - into a Federal Escrow Fund. Then, as shareholders, have the Taxpayer ( US Gov) file a Shareholders Derivative Suit and recover the money from the Escrow Fund.