NY AG Cuomo Letter to Barney Frank on Merrill Bonuses

[swag]

http://www.calculatedriskblog.com/2009/02/ny-ag-cuomo-letter-to-barney-frank-on.html

... "One disturbing question that must be answered is whether Merrill Lynch and Bank of America timed the bonuses in such a way as to force taxpayers to pay for them through the deal funding. We plan to require top officials at both Merrill Lynch and Bank of America to answer this question and to provide justifications for the massive bonuses they paid ahead of their massive losses....

What my Office has learned thus far concerning the allocation of the nearly $4 billion in Merrill Lynch bonuses is nothing short of staggering. Some analysts have wrongly claimed that individual bonuses were actually quite modest and thus legitimate because dividing the $3.6 billion over thousands upon thousands of employees results in relatively small amounts estimated at approximately $91,000 per employee. In fact, Merrill chose to do the opposite. While more than 39 thousand Merrill employees received bonuses from the pool, the vast majority of these funds were disproportionately distributed to a small number of individuals.
...
hese payments and their curious timing raise serious questions as to whether the Merrill Lynch and Bank of America Boards of Directors were derelict in their duties and violated their fiduciary obligations. We will also continue to examine whether senior officials at both companies violated their own fiduciary obligations to shareholders. If they did, this raises additional serious issues with regard to the inappropriate use of taxpayer funds."

[Muttocracy]

1. K&R

[malaise]

2. K & R

Love your new username. :hi:

[Muttocracy]

3. the two canines next to me at the moment think

well, of course! plus there's our Mutt-in-Chief :patriot:

You had a great name to start with - just wish the feeling would go away quicker...

[bridgit]

4. rec5

[democracy1st]

5. K & R

[deacon]

6. It's damn criminal. n/t K + R

[eilen]

7. Go Andrew Go!!!!!

rake those bastards over the coals and send them to prison. Thieving Mofos.

[snot]

8. $91,000 is a "relatively small amount"????!!!!

Someone really said that???

Do they have any idea how many elderly and poor could live on that for a year???

[Hatchling]

10. That's the yearly income for almost 100 elderly and disabled.

I would dearly love to have a pittance like that to suppliment my disability check.

[radfringe]

9. FinancialStability.gov

http://www.financialstability.gov /

Here, you can find such items as State Street CEO Ron Logue`s signed application for corporate welfare.

[KittyWampus]

11. why can't the government repossess the bonus money from that small number of people?

[DCKit]

12. "...the massive bonuses they paid ahead of their massive losses...."

No. "Paid ahead of REPORTING their massive losses." The banks and Wall St. knew the score.