You Talkin' To Me?
by digby
They just don't give a damn and they don't care who knows it:
Some Wall Street firms are looking for ways to sidestep tough new federal caps on compensation.
In response to expected bonus restrictions, officials at Citigroup Inc., Morgan Stanley and other financial institutions that got government aid are discussing increasing base salaries for some executives and other top-producing employees, people familiar with the situation said.
The crackdown, part of the economic-stimulus package passed by Congress and signed into law by President Obama last month, limits bonus pay for the top five executives of any recipient of taxpayer capital through the Troubled Asset Relief Program, plus the 20 next-highest-compensated employees.
I think one of the most revealing aspects of all this is the defiance of these guys. It would be very easy (and very, very smart) for them to keep a low profile, offer all kinds of concessions, be helpful, "patriotic," and contrite. They are, after all, masters of the universe. Unless the end of the world really is upon us, this too will pass and they will be back swallowing firehoses full of money.
The Galtian attitude is truly disturbing, not because it is immoral or even greedy, but because it is sostoopid. If these are the greatest financial minds in the world we are in much bigger trouble than I realized.
But I suppose I shouldn't be all that surprised:
Asked by committee Chairman Henry Waxman, D-Los Angeles, whether his free-market convictions pushed him to make wrong decisions, especially his failure to rein in unsafe mortgage lending practices, Greenspan replied that indeed he had found a flaw in his ideology, one that left him very distressed. "In other words, you found that your view of the world, your ideology was not right?" Waxman asked.
"Absolutely, precisely," replied Greenspan, who stepped down as Fed chief in 2006 after more than 18 years as chairman. "That's precisely the reason I was shocked, because I have been going for 40 years or more with very considerable evidence it was working exceptionally well."
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