Failed bank executives keep jobs!
Top bank execs responsible for U.S. economic fall out remain in control! Top news stories by JusticeNewsFlash.com for New York business litigation lawyers.
New York, NY (JusticeNewsFlash.com)–The Associated Press (AP) released astonishing news earlier today. Apparently, 9 out of 10 bank executives, who were directly responsible for the banking system when it nearly collapsed, remain in power. The United States government continues to pump billions of taxpayers’ dollars into the hands of the same bank executives who are responsible for risky, unfair and sometimes even shady business practices.
The same “financial gurus”, who got us into this mess, are now going to get us out of this mess? Interestingly, over 100,000 bank employees have been laid off in the past two years. Unemployment has almost tripled, credit is nonexistent, bank stocks have plummeted and the financial and securities industries have tanked. These top bank executives still have jobs! Workers and managers have been eliminated across the board during this recession, and their tax dollars have gone directly to bail out and save the jobs of the very executives who fired them. The U.S. government continues to offer a no-strings-attached bailout plan to the same leaders who are largely responsible for our current financial mess and overall economic crisis. The AP reviewed more than 200 publicly traded banks who have received billions in federal bailout money. The top news source discovered 87% of the top three executives, which are defined as the chief executive, financial and operating officers in 2006, still have their same job positions today. These figures are rather deceptive considering the 13%, of top the three executives, who left their jobs, retired or died, and most of the remaining executives stayed with their companies as consultants or directors.
The AP also reported Wells Fargo & Co., known as one of the top sub-prime mortgage lenders for low income and low credit score home buyers, has received $25 billion in bailout money. What Americans are not currently aware of is Wells Fargo is planning mass layoffs in the upcoming months. The company seems to have no emergent plans for the desperately needed emergency bailout money. The real kicker in all of this is CEO Richard Kovacevich, who has been the longtime CEO for Wells Fargo, not only remains the company’s chairman, but the board recently voted to waive its mandatory retirement age, allowing him to stay on as CEO.
On Monday, John Thain, former Merrill Lynch Executive rocked the financial community with his departure from Bank of America. The shocking news, reported by the New York Times, wasn’t his ousting, but the news he spent $1.2 million dollars renovating his personal office last year. Thain’s sudden departure prompted the former Merrill Lynch executive to announce he would repay the money asserting the financial picture and climate was different last year when his office was redecorated.
U.S. consumers and income taxpayers have been under the impression the United States was in a recession when Mr. Thain felt a $1.2 million personal office expenditure was necessary.
Top news stories by JusticeNewsFlash.com for New York business litigation lawyers.