Let's play Piñata

  After a couple of years on roller coaster like ride the banking community seems to be coming to its knees over pressure from a increasingly skeptical public who has seen their jobs disappear in droves while the FED has propped up the banks who were the GROUND ZERO of the Fiscal Crisis.    this week Britain added a 50% tax to bank-bonuses and France -never one to lead- followed suit and while the US hasn't quiet done that the Treasury Czar did announce that the top paid execs would NOT be getting a cash payout this year, instead receiving stock compensation which would in theory reward long-term successes over the recent compensation which were all based on very short-term results with no eye on the long-term viability of any of the products or how it could affect the stability of the market as a whole

The banking world is all crying foul, as they feel the government shouldn't step into private business –unless of course its to bail out failing banks or prop up weak banks and keep them employed.    We know the Government can ruin things as anything there behemoth bureaucracy seems to touch has an anti-Midas feel to it but when they all tell you that things should stay status-quo in regards to executive compensation it avoids any responsibility any executive had to this entire financial crisis.

They will say that bonuses are just like other peoples normal salaries except they are better indications of work as they are based on performance but seem to want to leave out the performance of the company and economy as a whole.

These people will say is that their group or division or team had nothing to do with credit-default swaps, bad-loans or complex financial instruments but that's not how it works. If one group can bring a WallStreet titan to it's knees and the Fed doesn't step in than everybody in the firm is standing on the soup-line. In the boom years the entire firm was richly compensated, in part because of the entire profitability (or perceived profitability) of the firm which I am sure was greatly aided by these 'rogue' divisions.. It's like they all embrace their firms unless it's not in their interest when they are happy to throw their brethren under the bus.

 I believe what bothers the average guy on the street though is not specifically the type of bonuses or even the total value but the fact they came back to the 2007 levels so quickly.   American people are capitalistic in nature and in general they understand that there is something very 'american' about the envy of celebrities, athletes and high-paid execs.   We are a culture that embraces shows like Cribs or Lifestyles of the Rich and Famous so you know we want to hear about the lavish parties, the big cars and the millions of dollars in jewelry. They just don't want to watch it paid for by the still warm corps of our tax money.
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