President Barack Obama told chief executive officers from some of the largest U.S. banks to “show some restraint,” even as he courted their support for his plans to stabilize the financial markets.
And yet the thefts continue apace. BofA wants to throw more of your tax money to the Thundering Herd at Mother Merrill:
Bank of America Corp. plans to increase some investment bankers’ salaries by as much as 70 percent following the takeover earlier this year of Merrill Lynch & Co., people familiar with the proposal said.
Base pay is supposedly going up, but anyone who says total compensation will not increase must think their audience is stupid. I-bankers always find a way to get more money from their firms. Always. If you don't believe me, just read this:
Goldman Sachs Group Inc.’s top 10 executives received $49.6 million from their investments in hedge funds and private equity funds during 2008, more than most of them earned in compensation after agreeing to forgo bonuses.
See, i-bankers who are denied compensation from normal cash flows can make up for it in other ways, such as selling stakes in proprietary funds back to the firm. These games are going to continue until Washington gets serious about prosecuting executives at banks that misuse TARP money.
