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The Hogs are Still Feeding on Wall Street

Updated on November 7, 2012

The Hogs are Feeding on Wall Street

The Wall Street Bankers who Cooked up the Toxic Subprime Mortgage Brew that Contributed to the Worldwide Recession are Again Feeding at the Big Bonus Trough.

Wall Street is back to paying big bonuses again, and not one of bankers has gone to jail for their role cooking up the toxic stew of CDOS and other deravitive "weapons of mass destruction" that sent world economies around the world into a tailspin.

The American taxpayers bailed out the banks and gave a huge gift to Goldman Sachs, ostensibly to save AIG from collapse, but which passed through AIG straight into Goldman's pockets. Goldman and several other name Wall Street banks have paid huge fines to settle civil fraud suits, in each case, "neither admitting nor denying guilt" while "doing the Lord's work," as a smiling Lloyd Blankfein, Goldman CEO put it so memorably in his testimony before Congress. The only individual criminally charged was a low level Goldman manager who, upon request of hedge fund operator John Paulson, cooked up a batch of doomed artificial mortgage derivatives and sold them to its unsuspecting customers while Paulson placed his bet against the toxic bundle. .

In the largest Securities and Exchange settlement in history ($550 million) Goldman agreed to settle the S.E.C.’s charges without admitting or denying the allegations by consenting to the entry of a final judgment that provides for a permanent injunction from violations of the anti-fraud provisions of the Securities Act of 1933.

More recently Rajat Gupta, a former Goldman Sachs and Procter and Gamble director, has been charged with furnishing material insider information on Goldman and Procter and Gamble to Raj Rajaratnam, operator of the Galleon hedge fund who is currently being tried on criminal insider trading charges.

Goldman Chairman Gets a Bonus of $53.4 Million!

The Chairman of Goldman Sachs received a bonus for 2006 of $53.4 million based on the firm's record profit of $9.5 billion. Average compensation per employee at Goldman was $622,000. John J. Mack at Morgan Stanley, took second in the Wall Street hog race with a paltry $41.1 million. He was followed by Richard Fuld, Jr. of Lehman Brothers who will be paid $189 million over 10 years.

Bush Administration Treasury Secretary Henry Paulson who came from his position of Chairman of Goldman last year has been whining lately that Wall Street is suffering a big disadvantage due to over-regulation and too many law suits. Ousted AIG Chairman Hank Greenberg financed a blue ribbon committee report supporting Paulson's conclusions. And the Bush Justice Department and SEC quickly moved to relax procedures for prosecution of violators and interpretations of Sarbanes-Oxley. Reporting on these moves by mainstream media was less than clear.




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    • Ralph Deeds profile image

      Ralph Deeds 5 years ago from Birmingham, Michigan

      11-6-12Wall Street Journal "Goldman Partners Pocket $22 Million"

      Goldman Partners Pocket $22 Million -

      Business is tough at Goldman Sachs, but the past is paying off: More than 30 executives, including CEO Lloyd Blankfein, recently cashed in stock options awarded in the afterglow of the company's initial public offering in 1999.

    • Ralph Deeds profile image

      Ralph Deeds 9 years ago from Birmingham, Michigan

      I hope Tom Wolfe isn't correct in predicting "the end of capitalism as we know it."

    • profile image

      Iðunn 11 years ago

      robber-baron era. 1880's. also. they had to pass legislation to fix it, it got so bad. edward martin- great freaking comment: "even the lowest form of life only eats until it's full" wll put!

    • profile image

      james tait 11 years ago

      Actually we are just back into the 1920s again.The same things that drove us into the last depression are at play again.

      this depression will not turn out so well .We are going to have a civil war and this country will probably be destroyed.

    • profile image

      Edward Martin 11 years ago

      Excellent info. Every CEO for any company is over compensated as far as I'm concerned. After, say $2 million, what is the reason to be greedy except a desire to be gluttonous. They are a disgrace to the human race. Even the lowestform of life only eats until it is full.