Perp Walks Instead of Bonuses

by Robert Scheer

There must be a criminal investigation of the AIG debacle, and it looks as if New York's top lawman is on the case. The collusion to save this toxic company in order to salvage the rogue financiers who conspired to enrich themselves by impoverishing millions is being revealed as the greatest financial scandal in U.S. history. Instead of taking bonuses, the culprits should be taking perp walks.

I'm not just referring to the swindlers in the Financial Products Subsidiary of AIG who devised and sold those insurance policies on derivatives that brought the world economy to its knees. They do seem deserving of a special place in hell, and presumably the same divine power that according to Scripture labeled usury a high moral crime and threw the money-changers out of the temple will consider that outcome.

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The Globe today headlines that major Canadian companies can't meet their pension obligations. And Chrysler wants to pay Canadians like they pay their lowest international workers or they'll pull out of Canada. Someone should tell these companies to just drop dead. Tom

Merrill Lynch pays out $4 bn in bonuses covered by TARP funds

by Uncle Bob Thu Jan 22, 2009 at 08:21:37 AM PST

After all the abuses of law, morals and ethics by the Bush administration over the last 8 years, I never thought that my outrage meter could get pegged again. Wrong.

The Financial Times reported that Merrill Lynch accelerated its normal time schedule for awarding bonuses and distributed $ 4 billion dollars on Dec 29, just 3 days before its takeover by Bank of America. At the same time Merrill posted $15 billion in losses for the fourth quarter. The total compensation for Merrill Lynch employees in 2008 was $15 billion.

That’s way more than just an outsized sense of entitlement, that’s flat-out stealing. And the money for this comes from, you guessed it, the US government. The Bank of America was prepared to back out of the deal once the size of the Merrill Lynch loss became apparent. The deal was completed only after guarantees of government money by the US Treasury.

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Any finanical types been arrested yet? Other than Madoff? Tom