Wednesday 5 November 2008

Are these big financial bailouts an even bigger mistake?

Here is the Mail Online reporting on the gold of 'Golden Sacks':

"Goldman Sachs is on course to pay its top City bankers multimillion-pound bonuses - despite asking the U.S. government for an emergency bail-out.

The struggling Wall Street bank has set aside £7billion for salaries and 2008 year-end bonuses, it emerged yesterday.

Each of the firm's 443 partners is on course to pocket an average Christmas bonus of more than £3million.

The size of the pay pool comfortably dwarfs the £6.1billion lifeline which the U.S. government is throwing to Goldman as part of its £430 billion bail-out.

As Washington pours money into the bank, the cash will immediately be channelled to Goldman's already well-heeled employees."

There is a lesson here for Our Kev and Young Wayne.
Enough is enough - no more bail outs.
This global financial crisis is fast turning into just another opportunity for the greedy to front the cash trough again.
There's even talk that some of the banks are holding their windfalls from the bail-out pot with the intention of using this money in takeovers or mergers to grow their empires.

The Prime Minister promised that his Australia-wide bank guarantee would involve a curb on executive salary packages, but he is not outling how this will be achieved beyond relying on financial institutions having clearer internal standards in the future.
Foxes in the hen house, my old china. Hundreds of foxes.

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