Wednesday, October 29, 2008

UnGodly Bonuses for Egos Too Big to Fail

Taxpayer equity injections into banks and ex-Wall Street firms total $125 billion. The firms set aside bonuses for the first nine months? Their "precious" totals $108 billion. Have they no shame?

The list of firms too big to fail grows with each merger. Rumor on the street is GM & Chrysler will combine with private and government money. Private equity underwriter Cerberus Capital Management will end up with the combined entity. Cerberus Chairman John Snow is the ex-Treasury Secretary.

If the deal passes, America will have a new "too big to fail" auto company. Does that apply to the combined Delta Airlines and Northwest, now the world's biggest airline?

Ungodly bonuses and ginormous firms? Incentive compensation fueled greed and highly levered combinations got America into our current pickle. The "hair of the dog" solution seems to guarantee future problems.