Thain Gets the Last Laugh
The executives over at Merrill Lynch probably threw some outrageous parties to celebrate the $3.4 million in bonuses that they just received from their good friend and mentor, John Thain. Parties are great for caterers and liquor distributors. But that kind of stimulus package doesn’t help the rest of us much.
Cronyism Triumphs Again
By now US taxpayers know what happens when you give a very wealthy man a truckload of cash with no strings attached. He awards most of it to his buddies, and spends the rest on a million dollar office makeover. Imported area rug: $87,000. Golden trash can: $1,400. Squandering other people’s money in style: Priceless.
Such is the life of a Wall Street Kingpin. Gordon Gekko described the prevailing mentality of Thain’s clan succinctly. “Greed is good.”
Of course any CEO worth his salt would note that you have to reward performance in order to keep good people on your team. The only question then, is whether the gang at Merrill Lynch deserves greater recognition for their company’s $15.3 billion in fourth quarter losses or for their contributions to the current Bank of America death spiral.
Bankrupt Banks
Just as it is possible to work as a stockbroker without living on Park Avenue, it is also possible for banks to restructure their debts through federal bankruptcy court. Creditors and shareholders would take the hit for a company’s bad investments, not taxpayers. We have a process for dealing with organizations that can’t pay their bills. Merrill Lynch should be required to follow that process.
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