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March 24th, 2009
chickgonebad | 12:19 pm - Banks not content with screwing us once
Ganked from Shakesville.
From an article in the Wall Street Journal, which I strongly recommend reading in full (it's not behind the subscriber wall) about how the administration's approach to Wall Street has reportedly changed (emphasis mine):
Meanwhile, Treasury Secretary Timothy Geithner and his colleagues worked the phones to try to line up support on Wall Street for the plan announced Monday. ... Some bankers say they turned the conversations into complaints about the antibonus crusade consuming Capitol Hill. Some have begun "slow-walking" the information previously sought by Treasury for stress-testing financial institutions, three bankers say, and considered seeking capital from hedge funds and private-equity funds so they could return federal bailout money, thereby escaping federal restrictions.
...Bankers were shell-shocked, especially when Congress moved to heavily tax bonuses. When administration officials began calling them to talk about the next phase of the bailout, the bankers turned the tables. They used the calls to lobby against the antibonus legislation, Wall Street executives say. Several big firms called Treasury and White House officials to urge a more reasonable approach, both sides say. The banks' message: If you want our help to get credit flowing again to consumers and businesses, stop the rush to penalize our bonuses.
Did you get that? The bank execs are so worried about their fucking bonuses that they're holding the entire country hostage.
http://shakespearessister.blogspot.com/2009/03/galling.html
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