I'm a huge fan of Maureen Dowd, but she -- as most members of the media -- is simply misinformed.
- Wells Fargo did not ask, nor did they NEED the $25 Billion. Hank Paulson made them (and BofA, and others -- whether they needed it or not) take the money. They had no choice. They were locked up in a situation room in the White House, and they were all told they had to agree to the government's terms. (By the way, BofA did not need the money, either. They were "asked" by Uncle Sam to buy Merril Lynch, with the government's money.)
- The bailout money the banks received is not a gift. In return for the money, the Federal government received millions of preferred stock. In the long run, the government will make money off dividends and interest.
- As a preferred stock owner, the government already received a $375 million dividend from Wells Fargo. (Funny how no one has reported this, by the way.)
- The Vegas trip is not a luxury fringe benefit for high-level executives. The yearly trips (a Wells tradition) are indeed rewards for their top performers. This includes not only sales reps, but also processors, underwriters, and even executive administrative staff. Many of these folks could never afford such a trip, and look forward to it. And make no mistake about it, they've EARNED it... not to mention that these are the people who bring in business! Without sales and its supporting cast, you have no business. Whatever they spend on these yearly trips is more than made up for with the money these people bring in.
- Why pay CEOs so much? It's a simple matter of supply and demand. There simply aren't enough people around who could do these jobs. I know we all think we can do their jobs... but if we had shown that, we'd be in that corner office already. Furthermore, these people put in decades of dedication to their companies. What they bring IN to the company is (in most cases) worth a LOT more than what the company gives them. Jack Welch took a beating when he left GE for his retirement package. Yet, he took a $5 billion appliance maker and made it a $280 billion multi-national conglomerate.
Why does A-Rod get 25 mil a year? 'Cause there aren't many people in this world who can do what he does. And because despite the $275 million the Yankess will dish out, they will make a profit in ticket sales and merchandising, and advertising. (Please spare me the steroids argument. I'd like to know if ANY of us could hit 318 with 121 RBIs -- with or without steroids.)
Here is another point I'd like to make: Who forced us to buy houses we could not afford and run up our credit card debts? Sure, the banks made it easier for us to get those loans (because we wanted them)... but, why aren't WE (the consumer) taking ANY responsibility in any of this. We refuse to save; we spend more than we make; and we buy houses we cannot afford. When the whole thing comes crashing, we cry fowl and blame the banks! We are at least as responsible as they are for this mess. Isn't it like us to blame others, but not take responsibility for our actions?
"Idiot bankers in Wall Street," is what I heard one congressman refer to them as. How about "Idiot consumers"? Funny how none of us had any issues at all with the banks when things were going well. Suddenly, they are now evil, evil people.
Give me a fucking break...!
OK, I'm done. Carry on.
