How American Oligarchs Are Pushing America to the Brink of Fascism
- Thread starter dbphoenix
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Neither Capitalism nor Socialism have morals. People have morals.
Influence
February 4, 2015
Wall Street Pays Bankers to Work in Government and It Doesn't Want Anyone to Know
By David Dayen
Citigroup is one of three Wall Street banks attempting to keep hidden their practice of paying executives multimillion-dollar awards for entering government service. In letters delivered to the Securities and Exchange Commission (SEC) over the last month, Citi, Goldman Sachs and Morgan Stanley seek exemption from a shareholder proposal, filed by the AFL-CIO labor coalition, which would force them to identify all executives eligible for these financial rewards, and the specific dollar amounts at stake. Critics argue these “golden parachutes” ensure more financial insiders in policy positions and favorable treatment toward Wall Street.
“As shareholders of these banks, we want to know how much money we have promised to give away to senior executives if they take government jobs,” said AFL-CIO President Richard Trumka in a statement. “It’s a simple question, but the banks don’t want to answer it. What are they trying to hide?”
The handouts recently received attention when Antonio Weiss, the former investment banker at Lazard now serving as counselor to Treasury Secretary Jack Lew, acknowledged in financial disclosures that he would be paid $21 million in unvested income and deferred compensation upon exiting the company for a job in government. Weiss withdrew from consideration to become the undersecretary for domestic finance under pressure from financial reformers, but the counselor position—which does not require congressional confirmation—probably still entitles him to the $21 million. The terms of the award are part of a Lazard employee agreement that nobody has seen.
These payments are routine at major banks, several of which have explicit policies, found in filings with the SEC, outlining automatic awards for executives who rotate into government. Goldman Sachs offers “a lump sum cash payment” for government service, for example.
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February 4, 2015
Wall Street Pays Bankers to Work in Government and It Doesn't Want Anyone to Know
By David Dayen
Citigroup is one of three Wall Street banks attempting to keep hidden their practice of paying executives multimillion-dollar awards for entering government service. In letters delivered to the Securities and Exchange Commission (SEC) over the last month, Citi, Goldman Sachs and Morgan Stanley seek exemption from a shareholder proposal, filed by the AFL-CIO labor coalition, which would force them to identify all executives eligible for these financial rewards, and the specific dollar amounts at stake. Critics argue these “golden parachutes” ensure more financial insiders in policy positions and favorable treatment toward Wall Street.
“As shareholders of these banks, we want to know how much money we have promised to give away to senior executives if they take government jobs,” said AFL-CIO President Richard Trumka in a statement. “It’s a simple question, but the banks don’t want to answer it. What are they trying to hide?”
The handouts recently received attention when Antonio Weiss, the former investment banker at Lazard now serving as counselor to Treasury Secretary Jack Lew, acknowledged in financial disclosures that he would be paid $21 million in unvested income and deferred compensation upon exiting the company for a job in government. Weiss withdrew from consideration to become the undersecretary for domestic finance under pressure from financial reformers, but the counselor position—which does not require congressional confirmation—probably still entitles him to the $21 million. The terms of the award are part of a Lazard employee agreement that nobody has seen.
These payments are routine at major banks, several of which have explicit policies, found in filings with the SEC, outlining automatic awards for executives who rotate into government. Goldman Sachs offers “a lump sum cash payment” for government service, for example.
More >>
I agree, crony capitalism has gotten out of hand, only solution is to make the government less powerful so it is not worth bribing
exactly what we should be concerned about whether...
ts united fruit as the crony owning the guatemala govt or Wall Street owning ours.
How much were all those cabinet advisors making as they constitute 50 to 70 percent of our Presidents cabinets.
Is it any wonder why no one go in trouble for taking down our economy after 2008 or that former wall street guys can Corzine other peoples money and not get prosecuted.
its particularly concerning if you realize the Federal Reserve gets to create US dollars at will via electronic notation.
How the heck would they not own the polticians over time.
Especially if there are no term limits and they can outspend non establishment politicians by giving the establishment campaign bribes.
ts united fruit as the crony owning the guatemala govt or Wall Street owning ours.
How much were all those cabinet advisors making as they constitute 50 to 70 percent of our Presidents cabinets.
Is it any wonder why no one go in trouble for taking down our economy after 2008 or that former wall street guys can Corzine other peoples money and not get prosecuted.
its particularly concerning if you realize the Federal Reserve gets to create US dollars at will via electronic notation.
How the heck would they not own the polticians over time.
Especially if there are no term limits and they can outspend non establishment politicians by giving the establishment campaign bribes.
who the hell is this "government" we are all so worried about? We can change it every two years by vote.
sounds like you are more worried about "people"
If the people vote the right way the government must follow
and the change you are looking for will never occur if the people vote for democrats or republicans
they are too far gone, beyond hope, can't be revitalized, old and dead, no good for the people anymore
so that leaves two disenfranchised groups united, the third party left and the third party right
we may disagree on everything else, but the one thing we agree on is republicans and democrats must go
sounds like you are more worried about "people"
If the people vote the right way the government must follow
and the change you are looking for will never occur if the people vote for democrats or republicans
they are too far gone, beyond hope, can't be revitalized, old and dead, no good for the people anymore
so that leaves two disenfranchised groups united, the third party left and the third party right
we may disagree on everything else, but the one thing we agree on is republicans and democrats must go