When President Barack Obama slammed Fat Cat Bankers for taking huge bonuses after taxpayer bailouts in Dec. of 2009, it caused quite a stir in the media. To quote the President from a CBS” 60 Minutes Interview:
“”I did not run for office to be helping out a bunch of fat cat bankers on Wall Street. They’re still puzzled why is it that people are mad at the banks. Well, let’s see,” he said. “You guys are drawing down $10, $20 million bonuses after America went through the worst economic year that it’s gone through in — in decades, and you guys caused the problem. And we’ve got 10% unemployment.”
Either Mr. Obama has a very short memory, or there have been some gaurantees of 2012 camapign cash to be delivered by these same “Fat Cats” when we look at a recent announcement regarding Bank Of America bonuses for 2010.
In an article at the charlotteobserver.com* I found this blazing headline today:
Bank of America gives $33 million in stock to 4 top executives.
“Bank of America’s top four executives, including chief executive Brian Moynihan, are getting stock grants worth a total of about $33 million, though the ultimate payouts will depend on future company performance.”
I must also say I haven’t seen this mentioned by anyone in the television media so far today. Either they are awfully slow, or they are just telling us, ” Nothing to see here folks just move on” once again. The Chief Executive at BOA made only $6 million dollars in 2009. I guess that was an off year based on the performance of BOA considering the taxpayer had to bail them out to the tune of an extra 20 billion in Jan 2009. So how did Mr. Moynihan, the CEO of BOA do in 2010? How about a total of about $10 Million bucks? Of course these bonuses are not in cash now, as that would make it too obvious that the Fact Cats are getting fatter, so they are willing to accept stock in the company. It gets even more troublesome even further down in the charlotte observer piece as we see this little bit of information:
“ Three of the executives – chief financial officer Chuck Noski, global banking and markets executive Tom Montag and consumer banking head Joe Price – are also each receiving nearly $1 million stock grants that are similar to a cash bonus, according to a securities filing Monday.
Montag, a Merrill Lynch and Goldman Sachs alumnus who runs the Wall Street side of the company, could make the most money, about $16.1 million. That’s actually down from 2009, when he reaped $29.9 million, mostly from stock awards granted as part of his Merrill contract.”
So these bonuses are awarded in 2010 and parts of it are for future company performance. Well in 2009, BOA lost $2.2 Billion and in 2010 they lost $3.6 Billion dollars. Wow, these Cats are making $10 – 16 million dollar bonuses for posting almost $6 Billion in losses the last two years? That sure looks to me like they are doing just what Obama said he was going to put a stop to in 2009. What was that leglislation called that we were told would put an end to this Wall Steet Fat- Cattery? Oh yes that would be the famous Dodd-Frank Bill, also know as the vaunted Financial Reform Bill. So if we believe Obama and the Democrats of 2008- 2009, these FatCats at BOA are breaking the law right? What say you Mr. President?