The news of huge corporate profits as well as massive bonuses being paid out by the same entities that came begging for help last year boggles the mind. Knowing full well how both the Obama administration and the tax-paying public feels about the attitude of the financial industry, they went right ahead and parceled out huge bonuses, again.
The announcement of $140 billion in bonus money was met with outrage. When pressed, these titans of industry merely said that it was money well spent on these employees who helped turn the industry around. Well, actually, those "employees" were the U.S. taxpayers, something these guys are ignoring. Therefore, these bonuses should be paid to us. Where's our bailout?
This behavior is the height of arrogance. Everyone's outraged. But anger alone won't help. Social Security is in the red, the country still hasn't recovered from hurricane Katrina, unemployment is at a 30-year high. The list goes on and on. Why did the banking industry get so much of our money? And where are these "profits" coming from?
Not from lending, apparently. Banks are still not lending, which is hurting the economy. How are they making these profits? My bet is that they are still doing pretty much the same things as before the crash. No new regulations have been passed, despite much talk. Only last week did the House Financial Services Committee vote to regulate derivatives, those nasty little instruments that no one really understands but wreaked havoc on our economy. Banks have been steadfastly fighting legislation that would give states more leeway in restricting banking practices that prove injurious to consumers, and legislators are knuckling under.
If you are wondering why this is taking so long, consider this: The financial sector stepped up its congressional lobbying this year to keep regulation at bay. Michael Moore said in a recent Today show interview that they spent $200 million on this issue. I did a bit of checking on The Center for Responsive Politics site and found that Goldman Sachs, Citigroup, J.P. Morgan and the American Bankers Association are all in the top 30 for consistently having the biggest lobbyist "payouts". Is it any wonder that our elected officials have stagnated on the issue of banking reform?
As long as big money rules our lawmaking process, nothing will change. But, who will change the system that works so well for the people at the top?
The announcement of $140 billion in bonus money was met with outrage. When pressed, these titans of industry merely said that it was money well spent on these employees who helped turn the industry around. Well, actually, those "employees" were the U.S. taxpayers, something these guys are ignoring. Therefore, these bonuses should be paid to us. Where's our bailout?
This behavior is the height of arrogance. Everyone's outraged. But anger alone won't help. Social Security is in the red, the country still hasn't recovered from hurricane Katrina, unemployment is at a 30-year high. The list goes on and on. Why did the banking industry get so much of our money? And where are these "profits" coming from?
Not from lending, apparently. Banks are still not lending, which is hurting the economy. How are they making these profits? My bet is that they are still doing pretty much the same things as before the crash. No new regulations have been passed, despite much talk. Only last week did the House Financial Services Committee vote to regulate derivatives, those nasty little instruments that no one really understands but wreaked havoc on our economy. Banks have been steadfastly fighting legislation that would give states more leeway in restricting banking practices that prove injurious to consumers, and legislators are knuckling under.
If you are wondering why this is taking so long, consider this: The financial sector stepped up its congressional lobbying this year to keep regulation at bay. Michael Moore said in a recent Today show interview that they spent $200 million on this issue. I did a bit of checking on The Center for Responsive Politics site and found that Goldman Sachs, Citigroup, J.P. Morgan and the American Bankers Association are all in the top 30 for consistently having the biggest lobbyist "payouts". Is it any wonder that our elected officials have stagnated on the issue of banking reform?
As long as big money rules our lawmaking process, nothing will change. But, who will change the system that works so well for the people at the top?
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