Cynical Synapse

Sat, 14 Feb 2009

CEOs No Better Than Bank Robbers

Filed under: Bailout, Behavior, Business, Economy, Legal, Politics, Rants — cynicalsynapse @ 7:56 pm

Nobody knows where the Troubled Asset Relief Program (TARP) money went, including the oversight committee. We do know JP Morgan Chase got $25 billion from taxpayers. At the same time, the top 15 executives collected almost $112 million in bonuses.

JP Morgan Chase CEO Jamie Dimon, who apparently doesn’t care about financial responsibility, thinks a salary and bonus cap is unfair. He also says loans are flowing, but that’s not the way it seems on Main Street. Just like the testimony before Congress, I’ve had two credit cards raise interest rates. That makes me less likely to buy or invest.

Regarding salaries and bonuses, which CEOs claim bailout money was not used for them, Congressman Michael Capuano (D-MA) disagrees. “Come on! Money’s all of a sudden not fungible in your entities. It’s fungible everywhere else, but not in your entities,” Capuano said. If your company lost money and it took bailout funds, then taxpayer dollars were used to pay bonuses no matter what accounting tricks you use.

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