IIPM Ranked No. 1 B-School In Global Exposre - Zee...
After receiving bailout money, the executives are laughing their way to the bank
The President’s disgust at Wall Street looters was good. But we need more. We need disgorgement. Disgorgement is when courts force wrongdoers to repay ill-gotten gains. And I’m ill at the gains gotten by scummy executives while they’re getting bailed out by us! With the equally laconic Tim Geithner beside him, Obama called it “shameful” and “height of irresponsibility” for Wall Street bankers to give themselves $18.4 billion worth of bonuses for last year. They should know better, he coolly chided. But big shots seem impervious to knowing better.
When you make money out of money, unmoored from morality and regulators, it must unhinge you. How else to explain corporate welfare queens partridge hunting in England, buying French jets and Lamborghinis? Obama was less bracing during his campaign, when AIG executives were caught going to posh retreats after taking an $85 billion bailout. He called for them to be fired and to reimburse the federal Treasury. Now that he has the power to act, Obama spoke, as his spokesman Robert Gibbs put it, “Like that disappointed parent that doesn’t embarrass you in the mall, but you feel like you’ve let somebody down.” That’s not enough, not with the President continuing to dole out a trillion dollars to these malefactors of great wealth.
USA Today wrote about ‘The AIG effect’: Executives finding ways to spend more discreetly. More than a disappointed parent, they need a special prosecutor. Anyone who gave bonuses after accepting federal aid should be fired, and that money should be disgorged to the Treasury. Claire McCaskill popped out a bill to limit the pay of anyone at firms taking federal money to no more than the President makes – $400,000. She said on the Senate floor, “You can’t use taxpayer money to pay out $18 billion in bonuses. And they owe us something other than a fancy wastebasket and $50 million jet.” One Obama official said her idea is catchy, but it won’t work “because no one would come to the Treasury to participate, and that means our economy would continue to stumble downward.”
Sen. Chuck Grassley urged the administration to snatch back the bonuses. The Republican told me, “If this were Japan & a corporate executive did what is being done on Wall Street, they’d either commit suicide or go before the board and the country & apologise.” He was shocked to learn that the Office of Management and Budget, insistent on following the Paperwork Reduction Act, was dragging down a special inspector general’s investigation of what banks are doing with taxpayer money. Aren’t the taxpayers shareholders in these corporations now, and can’t shareholders sue or scream “You misspent my money!” like Judy Holliday? “In The Solid Gold Cadillac,” said Frank, who knows the movie.
“We got some preferred shares,” he mused, “but I don’t think we could sue on that basis.” Rudy Giuliani resurfaced Friday to defend corporate bonuses, telling CNN that cutting them would mean less spending in restaurants and stores. Stupid. Even without bonuses, these gazillionaires can still eat out!
Some Obama policy-makers still buy into the notion that if they’re too strict, these economic royalists, to use FDR’s epithet, might balk at the bailout, preferring perks over the prospect of their banks going belly-up. The President needs to think like Andrew Cuomo. “’Performance bonus’ for many of the CEOs is an oxymoron,” he said. “I would tell them, a) you don’t deserve a bonus, b) where are you going to go? and c) if you want to go, go.”
Maureen Dowd
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
ZEE BUSINESS BEST B SCHOOL SURVEY
For More IIPM Info, Visit below mentioned IIPM articles.
1500-plus IIPM students placed across the country with 44 bagging international offers
IIPM set to beat economic slowdown
IIPM, GURGAON
IIPM - Admission Procedure
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
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domain-b.com : IIPM ranked ahead of IIMs
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After receiving bailout money, the executives are laughing their way to the bank
The President’s disgust at Wall Street looters was good. But we need more. We need disgorgement. Disgorgement is when courts force wrongdoers to repay ill-gotten gains. And I’m ill at the gains gotten by scummy executives while they’re getting bailed out by us! With the equally laconic Tim Geithner beside him, Obama called it “shameful” and “height of irresponsibility” for Wall Street bankers to give themselves $18.4 billion worth of bonuses for last year. They should know better, he coolly chided. But big shots seem impervious to knowing better.When you make money out of money, unmoored from morality and regulators, it must unhinge you. How else to explain corporate welfare queens partridge hunting in England, buying French jets and Lamborghinis? Obama was less bracing during his campaign, when AIG executives were caught going to posh retreats after taking an $85 billion bailout. He called for them to be fired and to reimburse the federal Treasury. Now that he has the power to act, Obama spoke, as his spokesman Robert Gibbs put it, “Like that disappointed parent that doesn’t embarrass you in the mall, but you feel like you’ve let somebody down.” That’s not enough, not with the President continuing to dole out a trillion dollars to these malefactors of great wealth.
USA Today wrote about ‘The AIG effect’: Executives finding ways to spend more discreetly. More than a disappointed parent, they need a special prosecutor. Anyone who gave bonuses after accepting federal aid should be fired, and that money should be disgorged to the Treasury. Claire McCaskill popped out a bill to limit the pay of anyone at firms taking federal money to no more than the President makes – $400,000. She said on the Senate floor, “You can’t use taxpayer money to pay out $18 billion in bonuses. And they owe us something other than a fancy wastebasket and $50 million jet.” One Obama official said her idea is catchy, but it won’t work “because no one would come to the Treasury to participate, and that means our economy would continue to stumble downward.”
Sen. Chuck Grassley urged the administration to snatch back the bonuses. The Republican told me, “If this were Japan & a corporate executive did what is being done on Wall Street, they’d either commit suicide or go before the board and the country & apologise.” He was shocked to learn that the Office of Management and Budget, insistent on following the Paperwork Reduction Act, was dragging down a special inspector general’s investigation of what banks are doing with taxpayer money. Aren’t the taxpayers shareholders in these corporations now, and can’t shareholders sue or scream “You misspent my money!” like Judy Holliday? “In The Solid Gold Cadillac,” said Frank, who knows the movie.
“We got some preferred shares,” he mused, “but I don’t think we could sue on that basis.” Rudy Giuliani resurfaced Friday to defend corporate bonuses, telling CNN that cutting them would mean less spending in restaurants and stores. Stupid. Even without bonuses, these gazillionaires can still eat out!
Some Obama policy-makers still buy into the notion that if they’re too strict, these economic royalists, to use FDR’s epithet, might balk at the bailout, preferring perks over the prospect of their banks going belly-up. The President needs to think like Andrew Cuomo. “’Performance bonus’ for many of the CEOs is an oxymoron,” he said. “I would tell them, a) you don’t deserve a bonus, b) where are you going to go? and c) if you want to go, go.”
Maureen Dowd
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
ZEE BUSINESS BEST B SCHOOL SURVEY
For More IIPM Info, Visit below mentioned IIPM articles.
1500-plus IIPM students placed across the country with 44 bagging international offers
IIPM set to beat economic slowdown
IIPM, GURGAON
IIPM - Admission Procedure
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs
IIPM makes business education truly global-Education-The Times of ...
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