Henry Paulson has lost Control over US Finance, Economy

Bella nice find. I have known for a long time of this game they play and how they consider the unimportance of the middle class. It is crucial that they pass this legislation before the Bush leaves office. Nether McCain nor Obama will be able to implement any of the their plans when elected. Kiss good by to health care or anything else the two have in mind to change. The country will be so broke they will be lucky to be able to pay for the electricity in the white house.

You should be careful when writing about these Don’s because they are far more dangerous than the mafia.

What CONTROL has he LOST?

He is trying to bilk the system out of another 700 billion dollars...

Executives from some of the major investment and commercial banks involved in the financial upheaval and bailout earned hefty paychecks last year, according to proxy statements outlining their salaries, bonuses and stock options:

• Lehman Brothers Chairman and CEO Richard Fuld Jr. made $34 million in 2007. Lehman (OTC: LEHMQ) filed for Chapter 11 Bankruptcy protection earlier this month.
• Goldman Sachs (NYSE: GS), which Sunday gained Federal Reserve Bank approval to become a bank holding company, paid its chairman and CEO, Lloyd Blankfein, $70 million last year. Co-Chief Operating Officers Gary Cohn and Jon Winkereid were paid $72.5 million and $71 million, respectively.
• American International Group’s chief executive, Martin Sullivan, got a $14 million compensation package in 2007. He was ousted in June. The insurance giant (NYSE:AIG) is on the receiving end of an $85 billion federal bailout. Edward Liddy took over as AIG’s chief executive earlier this month.

• Morgan Stanley Chairman John Mack earned $1.6 million. Chief Financial Officer Colin Kelleher got a $21 million paycheck in 2007. Morgan Stanley (NYSE: MS) also received approval to become a banking holding company, a shift that allows Morgan and Goldman to bring in bank deposit assets which offer more-solid financial footing.
• Merrill Lynch CEO John Thain was paid $17 million in salary, bonuses and stock options in 2007. Merrill (NYSE: MER) is being acquired by Bank of America Corp. (NYSE: BAC). BofA CEO Kenneth Lewis earned $25 million in 2007.
• JP Morgan Chase & Co. Chairman and CEO James Dimon earned $28 million in 2007. Chase (NYSE: JPM) acquired troubled investment house Bear Stearns earlier this year with the federal government promising to take on as much as $30 billion in Bear assets to help get the deal done.
• Fannie Mae CEO Daniel Mudd received $11.6 million in 2007. His counterpart at Freddie Mac, Richard Syron, brought in $18 million. The federal government announced earlier this month it was taking over the mortgage backers with Herbert Allison to serve as Fannie CEO and David Moffett the new CEO at Freddie.
• Wachovia Corp. Chairman and CEO G. Kennedy Thompson received $21 million in 2007. He was succeeded by Robert Steel as CEO in July. Steel is slated to get a $1 million salary with an opportunity for a $12 million bonus, according to CEO Watch. Wachovia (NYSE: WB) is one of the banks that could be sold in the midst of the financial crisis.
• Seattle-based Washington Mutual (NYSE: WAMU) will pay its new CEO, Alan Fishman, a salary and incentive package worth more than $20 million through 2009 for taking the helm of the battered bank, according to the Puget Sound Business Journal.
• CEOs of large U.S. corporations averaged $10.8 million in total compensation in 2006, more than 364 times the pay of the average U.S. worker, according to the latest survey by United for a Fair Economy. In 2007, the CEO of a Standard & Poor’s 500 company received, on average, $14.2 million in total compensation, according to The Corporate Library, a corporate governance research firm. The median compensation package received was $8.8 million.

http://www.bizjournals.com/eastbay/stories/2008/09/22/daily37.html

Thanks AZ Mod.

This morning the news of Citigroup buying Wachovia just reinforces my point.  Some analysts report on CNBC this morning that Citigroup doesn't have the money to buyout Wachovi, here's why;

From CNN Money:

At the same time, Citigroup has been no picture of health. The New York City-based financial services giant has posted close to $18 billion in losses over the past three quarters, while taking nearly $50 billion in writedowns on its diverse loan portfolio.

The deal for Wachovia also comes as somewhat of a surprise given recent efforts by Citi's leadership to shrink the company.

As part of the deal, Citigroup will acquire Wachovia's massive deposit network, about $53 billion in the company's debt, as well as more than $300 billion of Wachovia's loan portfolio.

Following completion of the acquisition, Citigroup will have more than $600 billion in deposits in the U.S., about a 9.8% market share. Total deposits worldwide will be $1.3 trillion.

Citigroup said it will absorb up to $42 billion of losses on those loans, while the Federal Deposit Insurance Corporation will be on the hook for anything beyond that.

Banking regulators, who helped broker the deal following consultations with President Bush, the Federal Reserve and Treasury Secretary Henry Paulson, viewed the deal as necessary to avoid what could have been a painful fallout for both the economy and the already fragile financial system.

"A failure of Wachovia would have posed a systemic risk," Paulson said in a statement.