Re: Banks Set for Record Pay - 18% over last year!!

[David Farber <dave () farber net>]

Begin forwarded message:

From: "George Ou" <george_ou () lanarchitect net>
Date: January 15, 2010 6:45:17 AM EST
To: "'Ronald J Riley \(RJR\)'" <rjr () rjriley com>, <dave () farber net>
Subject: RE: [IP] Banks Set for Record Pay - 18% over last year!!

Hmm, that's a change in the right direction at least.

Well, all our stocks are down, but again it's within the historical
trendlines +/- 20%.  Now it's not like you're going to take all your money
out at once (especially in these low valuation times).  Most of us are going
to withdraw money over the course of a few decades so it actually averages
out and we still make our 10% compound interest from the Wilshire 5000 which
is still a pretty sweet deal.  So frankly, I'm a bit tired of hearing about
people complaining about their stocks.

As for home value, they're still over valued compared to the trend line.  If
your home value dropped, that's unfortunate.  So did mine, but that's the
way the dice rolls and I'm not going to blame it on some guy that happens to
work for a bank just because I might naturally be jealous of the money he
makes.


I'm not a banker, and I'm envious I don't make that kind of money.  But
they're people just like you and me and their employers agreed to pay them X
per year with a bonus of Y if certain conditions are met.  Now the
administration now wants to apply an extra tax to all of these banks to
cover up the failures of the auto industry even though half the banks have
already paid back their TARP money PLUS INTEREST, and he's going to apply it
to banks that paid back or never received any TARP money.  I have some
serious ethical problems with targeting people who have broken no laws or
done anything unethical.  Those banks that received TARP money but paid back
the principle + interest have paid back their dept as far as I'm concerned.
I simply don't care to wage class warfare.  





George Ou

-----Original Message-----
From: Ronald J Riley (RJR) [mailto:rjr () rjriley com] 
Sent: Friday, January 15, 2010 6:30 AM
To: 'George Ou'; dave () farber net
Subject: RE: [IP] Banks Set for Record Pay - 18% over last year!!

My retirement savings are still down, my real-estate values are still
way-way down and we are being raped on property taxes far in excess of the
actual value.  Income over the last year is 20% of normal.  Our whole
financial system is in a shambles.  Many people have been wiped out.  The
people at the top of the banking industry did steal from all of us and the
fallout is far from over.

Probably the worst aspect of this is that small businesses, the source of
most job creation are going under in droves.  Banks were supposed to use
stimulus money to make loans but instead they put it in their piggy banks
and are now paying huge bonuses.  

Bankers produce hardly anything of value.  They are dead weight and
collectively this industry is way out of control as are our legislators.

Ronald J Riley

-----Original Message-----
From: George Ou [mailto:george_ou () lanarchitect net] 
Sent: Thursday, January 14, 2010 11:50 PM
To: dave () farber net; ip; rjr () rjriley com
Subject: RE: [IP] Banks Set for Record Pay - 18% over last year!!

" This is absolutely outrageous.  These shysters stole half or more of our
collective life savings and then bought and conned our legislators"

Really?  You're saying that most or all of the banks and the people who work
for them stole half our money?  You're going to paint all of them as Bernard
Madoff type criminals?  Your response is completely irrational.

Did most of us actually lose our money or did we merely lose our
instantaneous valuations?  Peak valuations dropped 50% at the worst of it
but we're back to a 25% drop from peak inflated 2007 valuations and heading
back to the normal historical trend lines.

As for the TARP money, many of us didn't support them and many banks but
it's just stupid to portray them as giveaways.  In fact, many of the banks
were pressured by the administration to take the money, and the
administration initially pressured the banks NOT to pay back the TARP money
because they didn't want to lose government control of those banks.  It
turns out that about half of the total TARP money has *ALREADY* been paid
back.  In fact, it did surprise me when I saw an angry Obama and angry CNN
reporters fuming over the fact that these banks would pay the money back so
soon so they could pay bonuses.  I mean isn't that what we WANT the banks to
do?  Which is to pay back their loans?  And if they did pay back their loans
and they're on solid financial ground, and the employees (these are people
who have mortgages to pay and families to feed too you know) met their goals
for earning their contracted bonuses, why are you acting like they're
stealing your money?



George Ou

-----Original Message-----
From: Dave Farber [mailto:dfarber () me com]
Sent: Thursday, January 14, 2010 8:09 PM
To: ip
Subject: [IP] Banks Set for Record Pay - 18% over last year!!


> From: "Ronald J Riley (RJR)" <rjr () rjriley com>
> To: <dave () farber net>
> Date: January 14, 2010 09:50:54 PM EST
> Subject: Banks Set for Record Pay - 18% over last year!!
>
>
> Dave,
>
> WSJ is reporting:
>
> Major U.S. banks and securities firms are on pace to pay their people about
> $145 billion for 2009, a record sum that indicates how compensation is
> climbing despite fury over Wall Street's pay culture.
>
> An analysis by The Wall Street Journal shows that executives, traders,
> investment bankers, money managers and others at 38 top financial companies
> can expect to earn nearly 18% more than they did last year -- and slightly
> more than in the record year of 2007. The conclusions are based on an
> examination of securities filings for the first nine months of 2009 and
> revenue estimates through year-end.
>
> http://online.wsj.com/article/SB10001424052748704281204575003351773983136.h
t
> ml?mod=djemalertNEWS
>
> ===
>
> This is absolutely outrageous.  These shysters stole half or more of our
> collective life savings and then bought and conned our legislators into
> giving them a bailout which we will all pay for, every man, woman and child
> will be paying for this for decades.  Nothing has changed in this industry.
> It is staggering and must be reigned in.  When are the people going to wise
> up and start tossing incumbents out?
>
> Ronald J. Riley,
>
>
> I am speaking only on my own behalf.
> Affiliations:
> President - www.PIAUSA.org - RJR at PIAUSA.org
> Executive Director - www.InventorEd.org - RJR at InvEd.org
> Senior Fellow - www.PatentPolicy.org
> President - Alliance for American Innovation
> Caretaker of Intellectual Property Creators on behalf of deceased founder
> Paul Heckel
> Washington, DC
> Direct (810) 597-0194 / (202) 318-1595 - 9 am to 8 pm EST.


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