Momma, let your babies grow up be executive management

Yet, while they were making these mistakes in the past that contributed to the current state, they were cashing seven figure bonus checks at the same time.

The argument is if they don't pay these bonuses, these execs will go somewhere else--a retention play.

Maybe it's not such a bad thing if some of these folks do leave, considering where they've led their company....

Oh, and by the way, A House of Representatives committee led by one Mr. Henry Waxman had 3 CEO's in front of it today explaining some large executive payouts while their corporate Romes were burning around them.

 

Huh?

Killinger said he wouldn't accept his 2007 bonus after WaMu reported abysmal annual results.

 

good move on his part, but what about the other "100" top executives? My guess is they didn't forego their bonuses. THE CEO is falling on the sword on their behalf.

 

I must not understand what you mean. Wouldn't they have to get banged on retroactively no matter? As far as incentive, it seems to me like the incentive is to not screw up the economy any worse than it has been as a result of the mortgage crisis, which I commend Killinger for apparently taking this stance.

 

Great. Be sure to remember that when these motherfuckers (or more specifically, their lobbyists) come hat in hand, begging for their bailout from the taxpayers.

 

Oh for fuck's sake. Need to keep these idiots motivated?

These executives, and yourself, are delusional if you think they are uniquely qualified and deserve this. Ginned up financials, based on liar loans, bogus and "wink-wink" appraisals, then carved up and sold to investors worldwide, only to see them splatter all over the place.

It doesn't deserve a dime of renumeration.

 

SigR, it actually makes sense to you that a thrift exclude residential loans from it's bonus calculation?

 

Well, looky here. The "private" business, as SigR puts it, is in line for the bailout.

Here's one plan for bailout of the mortgage busines:
http://www.reuters.com/article/gc06/idUSN055645520080305?pageNumber=1&virtualBrandChannel=10150

Here's another plan for a bailout
http://www.nytimes.com/2008/02/23/business/23housing.html?_r=2&pagewanted=1&oref=slogin

Here's another one:
http://latimesblogs.latimes.com/laland/2008/03/bailout-watch-t.html

News item: Republican Sen. Kit Bond of Missouri (pictured) today proposed a $10 billion-plus housing bailout plan that includes $15,000 tax credits for buyers of foreclosed homes and tax breaks for mortgage companies that have lost money recently.

For fuck's sake, dude. A private company? There's nothing private about WaMu.

Lose billions, reward the execs with millions, and then let the taxpayers foot the bill.

And you don't have a problem with it.

Fantastic.

 

*crickets*

 

This market force is moved by the invisible finger...

 

To say nothing of the money that banks borrow from the FED at rates miles below what is charged to borrowers, or paid to customers.

WaMu a private company?

Good lord, how simplistically stupid are some of the people who log in here?

 

Nobody's saying they don't have a problem with the sub-prime mortgage crisis. It just doesn't make sense in the micro context for WaMu to tell the CEO, "Your bonus this year will be affected by the write-downs we already know we're going to take." You're basically starting the guy out in a hole -- of his and others' own creation, no doubt -- and that doesn't motivate any employee to do well. In that case, he might go somewhere else where he can start at square one. WaMu has to search for another CEO in that case, and nobody is going to step in if the company gives them goals tied to inevitable write-downs.