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Bonuses at big banks have been slashed. They've been capped at as low as $125,000. Do you feel sorry for the bank executives?

Diane 2012/02/08 03:52:35
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Because of Dodd-Frank, Wall Street bonuses at some of the big banks have been capped. Morgan Stanley capped its cash bonuses at $125,000. Bank of America set $150,000 limits on some cash bonuses.



"It's a bloodbath," one mid-level Goldman Sachs employee told CNBC about bonus day. "One girl was actually crying, I think," said another. After final quarter profits in 2011 fell by 58 percent from the same time last year, the firm shaved wages and bonuses down 21 percent.



http://jobs.aol.com/articles/2012/02/06/with-bonuses-slashed-...



The problem is that, because of Dodd-Frank, banks will no longer be allowed to conduct proprietary trading. Proprietary trading is this: Let's say you deposit $10,000 in a bank. That bank was once able to take that $10,000 and gamble it in the stock market. If they made a profit, the banks pocketed the money. If they took a loss, they still owed you what you deposited, but, if they didn't have the money because they gambled it away, you would have to be paid by the taxpayers if you wanted to withdraw your money.


Before Dodd-Frank, banks were able to leverage at 30 or 40 to one ratios. Now banks have to keep a lot more money on hand.

Of course, Republicans feel sorry for the banks and want to repeal Dodd-Frank. That's because Republicans are owned by the banks.

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  • luvguins 2012/02/08 04:14:48
    No, I don't feel sorry for the bank executives at all.
    luvguins
    +9
    Poor dears. I am sure they saved their previous bonuses unless the dough went up their noses, or they spent too much on partying with escorts. They will just have to make do with $125-150 thousand now. Shows we need even more than Dodd-Frank.

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  • ☆stillthe12c☆ 2012/02/13 04:40:55
    No, I don't feel sorry for the bank executives at all.
    ☆stillthe12c☆
    I have not seen any return on my saving or investments that would warrant them getting a dime bonuses. They should be give a time limit to repay the money that they got from the Government and the Fed. Most of these people belong behind bars. As the law is now I am not sure that it is Constitutional and not what we need. The payments should be so high that there is not enough money for bonus rather than mandating a cap. The Banks received some 1.85 trillion dollar from the Fed and the Tax payers. That is 1 or 2trillion that we know of as there is another trillion that went to the Banks in Europe and that leaves 6 or 7 trillion that is still unaccounted for. Tim Geithner should be answering for how he could print this much money without saying a word to Congress and we should find out if the President new of this and if he did we deserve an explanation.
  • scbluesman13 2012/02/08 22:32:57
    No, I don't feel sorry for the bank executives at all.
    scbluesman13
    +2
    Now if we could just reinstate glass-steagall.
  • HL 2012/02/08 21:24:06
    No, I don't feel sorry for the bank executives at all.
    HL
    +3
    I have been experiencing decreases in my salaries what bonuses. Wallstreet greed
  • Tea in the Harbor 2012/02/08 17:04:49
    No, I don't feel sorry for the bank executives at all.
    Tea in the Harbor
    +4
    I think they should have to work for minimum wage until they work off the damage they've caused the nation.
  • C. C. Rider 2012/02/08 16:51:44
    No, I don't feel sorry for the bank executives at all.
    C. C. Rider
    +3
    I think it is directly due to the OWS gang putting pressure on the crooks. GOOD WORK!!!! ows ows
  • Diane C. C. R... 2012/02/09 02:38:45
    Diane
    +2
    It's because of Dodd-Frank, but OWS didn't hurt the cause.
  • #Justic... C. C. R... 2012/02/10 06:31:36
    #Justice4Trayvon 629 BLOCKT CONS
    +3
    OWS are the TRUE AMERICAN PATRIOTS! They are fighting for US!!!
  • #Justice4Trayvon 629 BLOCKT... 2012/02/08 15:11:35
    No, I don't feel sorry for the bank executives at all.
    #Justice4Trayvon 629 BLOCKT CONS
    +3
    Why should I feel sorry for the gamblers who tanked our economy? I could have screamed when them criminals pocketed multi-million dollar bonuses after dang near putting us into a 2nd Great Depression.

    Even though Dodd-Frank was watered down (that's the reason I pulled my money from BoA & Chase--not in a credit union) it still has good things that protect regular people like ME. No wonder they corrupt members of Congress (think Republicans) can't stand it & wanna go back to the days where bank executives could be paid multi-million dollar bonuses after killing our economy.
  • jubil8 BN-0 PON 2012/02/08 15:00:31
    Yes, I feel sorry for the poor bank executives.
    jubil8 BN-0 PON
    +1
    I can't decide which to do first -- gnash my teeth, tear my hair out by the roots, organize a celebrity fundraiser for them, or start a grassroots petition to get those mean decision-makers to change their minds.

    I think I'll just go back to sleep.

    [Sorry to skew the poll results with a "false positive," Diane. :) ]
  • Diane jubil8 ... 2012/02/08 15:35:57
    Diane
    +2
    That's okay. lol
  • Sir Bud. 2012/02/08 13:43:07
    No, I don't feel sorry for the bank executives at all.
    Sir Bud.
    +4
    Boo hoo!.
  • #Justic... Sir Bud. 2012/02/10 06:34:27
    #Justice4Trayvon 629 BLOCKT CONS
    +2
    There was an article on Alternet that spoke about Matt Taibbi's article in Rolling Stone. It is excellent reading & I recommend it to all my friends.

    http://www.rollingstone.com/p...
  • Sir Bud. #Justic... 2012/02/10 11:36:02
    Sir Bud.
    +2
    Thanks,great report,interesting and have snagged it!.
  • #Justic... Sir Bud. 2012/02/10 11:42:49
    #Justice4Trayvon 629 BLOCKT CONS
    +1
    I posted it also.
  • Diane #Justic... 2012/02/11 20:20:27
    Diane
    Interesting article. Yes, the problems in Europe had an effect, but Dodd-Frank is a big factor too. Even after the recovery, bank executives will no longer be able to make outsized profits from behavior that causes their banks to be unsound.

    From the link I posted.

    It's not just a temporary belt-tightening, according to Sherman, who interviewed over two dozen financial players for the piece. While the slow recovery, the financial crisis in Europe, and the tsunami in Japan have all had an effect, there are bigger and longer-lasting shifts underfoot.

    The controversial Dodd-Frank act, which is gradually coming into effect, touches every single aspect of the financial services industry. Most significantly, banks will no longer be able, for the most part, to conduct proprietary trading and hedge-fund investing. They have to keep a lot more money on hand too, and can no longer leverage at the 30- or 40-to-1 ratios that were commonplace at the peak of the credit boom.
  • Sissy 2012/02/08 13:18:56
    Yes, I feel sorry for the poor bank executives.
    Sissy
    +6
    Oh dear, you mean there might not be any more retirement packages like fmr. Treas. Secretary Hank Paulson received even as Goldmann Sachs was tanking? $500 MILLION dollars worth? Tut, tut, that is so sad.
  • NarcolepticGoat 2012/02/08 12:08:23
    No, I don't feel sorry for the bank executives at all.
    NarcolepticGoat
    +3
    What is this word "bonus"?
  • #Justic... Narcole... 2012/02/08 15:13:45
    #Justice4Trayvon 629 BLOCKT CONS
    +4
    Bonus = Paying executives for FAILURE! The bigger the failure, the bigger the bonus. Now tell me that ain't bass-ackwards!!!
  • Bastion 2012/02/08 10:44:51
    No, I don't feel sorry for the bank executives at all.
    Bastion
    +7
    "It's a bloodbath"

    calvin and hobbes laughing
  • DutchHeretic Native non-Ame... 2012/02/08 10:01:43
  • Dave 2012/02/08 07:00:20
    Yes, I feel sorry for the poor bank executives.
    Dave
    +6
    Yes I do! Ah has been told that the peoples with the mostest money are the job creators, so if'in they's cain't git more moneys then ah cain't gets a job! It jus ain't fair ta the wealthy.
  • Sissy Dave 2012/02/08 13:21:25
    Sissy
    +7
    I share your pain
    crying
  • Dave Sissy 2012/02/09 03:43:58
  • #Justic... Dave 2012/02/08 15:17:10
    #Justice4Trayvon 629 BLOCKT CONS
    +5
    Aww pity pity shame shame. Dem "job creators" can't buy a 4th Bentley. My heart just breaks for their destitute family who are jetting off to their 5th vacation home in their vacation jet that us taxpayers are subsidizing. Shame on US for making life so hard for them! < / sarcasm >
  • Dave #Justic... 2012/02/09 03:44:32
  • twocrows 2012/02/08 06:46:11
    No, I don't feel sorry for the bank executives at all.
    twocrows
    +5
    I'm very sorry - - sorry they're not in jail where they belong.
    and sorry for the rest of us for the agony we're going through as a result of their slash-and-burn tactics that left the nation in shambles.
  • oldcavpilot 2012/02/08 05:04:08
    Yes, I feel sorry for the poor bank executives.
    oldcavpilot
    +7
    You're breaking my heart. It may drop them a whole tax bracket so they have to pay more. What a shame. *sniff, sniff*
  • goatman112003 2012/02/08 05:04:08
    Undecided
    goatman112003
    +2
    I don't feel sorry for the big bank executives but the last remark with Dodd-Frank of Republicans being owned is BS. The bill needs amending to lessen the paperwork and costs on the small and middle banks. They didn't cause the problem or need the bailout. The small local bank doesn't give whoopi bonuses and doesn't gamble with the money. Same thing with the middle sized banks as they are the regionals and none of them got involved with subprime and none of them needed bailouts. They are probably the soundest banks in the country. Your problem is with the big ones which the government bailed out and only them.
  • Sissy goatman... 2012/02/08 13:24:34 (edited)
    Sissy
    +4
    So how do you separate them out? Obviously if it doesn't affect the sound, little banks what's the problem in dealing with the ones that got us into this gawd-awful mess? We live in a small town and one of my classmates is the president. I asked her once if she "minded" the hassle Dodd/Frank imposes and she said, "after what we've been thru, I don't object to anything these guards have been put in place". I tend to heartily agree.
  • goatman... Sissy 2012/02/08 13:33:02
    goatman112003
    The amount of paperwork for a small bank is the same as the big bank and the costs are the same meaning the little bank is paying the same as the big bank. The little bank screws up,it goes out of business but a big one we bail out. That's the difference.
  • Sissy goatman... 2012/02/08 14:10:55
    Sissy
    +2
    I'm still trying to figure out what your solution is? A simpler accounting system or simply scrapping Dodd/Frank because its too much work for the little bank?
  • jubil8 ... Sissy 2012/02/08 15:04:16
    jubil8 BN-0 PON
    +2
    I don't think Congress knows what "simple" means lol.
  • Diane jubil8 ... 2012/02/08 15:47:42
    Diane
    +4
    Community banks are exempt from many of the regulations and are doing just fine.

    http://www.politifact.com/tru...
  • jubil8 ... Diane 2012/02/08 23:40:42
    jubil8 BN-0 PON
    +3
    I know mine is -- they send out regular reports reassuring us that they're in fine shape and our money is safe. :) (not sarcastic, I believe them.)
  • Diane jubil8 ... 2012/02/09 02:39:53
    Diane
    +4
    Banks are in much better shape because of Dodd-Frank. They have to be well capitalized.
  • Diane Sissy 2012/02/08 15:47:55
  • Diane Sissy 2012/02/08 15:46:26
    Diane
    +3
    The community banks were exempted from many of the regulations, so goatman's is specious argument. He's believing the lies of the Republicans.
  • Diane goatman... 2012/02/08 15:43:39 (edited)
    Diane
    +3
    You've got to quit listening to the lies of the Republicans.

    http://www.politifact.com/tru...
  • Sissy Diane 2012/02/09 13:01:23
    Sissy
    +3
    Which ones (lies) Diane. There is a boatload of them and they keep coming to shore everyday!!
  • Diane Sissy 2012/02/10 03:22:17
    Diane
    +3
    I accidentally left off the s on the end of the word Republicans. They all lie.

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