I’m Not Offended By Big Bonusus
In an interview on CNN news, Christina Romer, chairperson, White House Council of Consumer Affairs, stated that she and the White House were offended by some of the large bonuses that some banks pay the sum of their employees. She also stated that the American public was offended as well, and didn’t support the bank doing this kind of thing especially after the larger banks were bailed out why the government within the last year or so.
Let me state this for the record. I am not one of those people who are offended by big bonuses that are being paid out by the banks. I am not someone who is offended by the money that anybody gets. I think that every person who gets a deal which gives them a whole out of money in some way deserved to get that money, because if they didn’t they wouldn’t be getting that money. Now, that doesn’t mean that they always live up to the money once they get it, but they had to be doing something which encourage someone to decide they would offer them that kind of money in the first place.
Having said that, it does seem to show a lack of common sense for the banks, especially the large ones that just paid off their TARP money from the government, to walk right back into the same type of situation that helped put them in trouble in the first place. I do understand that they feel these bright minds that they’re paying these million dollar bonuses to are the ones who are helping them turn things around, but one would think they would find other ways of compensating some of these people rather than the way they’re doing it. Sure, I understand that there’s competition for these big brains from other banks, but I’ve always been under the assumption that you spend the money you have and not the money you don’t have. And let’s face the fact that there is a difference, at least right now, in the financial position when comparing banks such as Chase to Citigroup.
I also understand a thing that says our economy is still not doing well, and that unemployment is really high, but I don’t think that is the responsibility of the banks unless they were laying off a lot of their own people so that they could pay these bonuses to these geniuses. Then again, Citigroup is going to be laying off a lot of people in their mortgage division, but I haven’t heard yet just what kind of money to Citigroup themselves are going to be paying out as bonuses.
What this does say to me, however, is that if these banks get into trouble again the federal government needs to seriously think before even considering bailing any of these banks out again. Because if they fail again, this tells me that both the people at the top in the geniuses were getting these big bonuses aren’t very smart and probably all need to be replaced. And if they’re replaced, bonus deals can be worked differently, and maybe I’m being naïve, but I can’t believe that there aren’t some very talented people who would jump at the chance to make even as much as $300,000 or $400,000 as opposed to the multimillion dollars that some of them are getting now. I know it cost a lot to live in Manhattan, but I think that with salary and bonuses of around $400,000 you can still live pretty well.