“The first thing that would make me feel a little bit better towards them if they’d follow the Japanese model and come before the American people and take that deep bow and say I’m sorry, and then either do one of two things — resign, or go commit suicide.”I'm fairly certain he's going to regret that comment. Mainly because it was stupid.
The one thing that none of the critics of the bonuses seem to want to mention is that these funds were being paid as part of existing contracts with those employees. There was nothing in the TARP agreement that abrogated existing contracts, nor in any way restricted the company from using these funds in the normal operation of their business. If you want to blame someone for this matter, blame Nancy Pelosi, Barney Frank and the other that wrote the TARP legislation.
Was it good public relations to pay these bonuses? Of course not. However, if they hadn't the traders involved would have sued and likely won their cases at a significantly increased cost. Paying the bonuses is probably the cheapest way out.
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