This is what we should have forced Wall Street to do for our money...

[Guest]

This is awesome. Why didn’t the Feds force the Wall Street Financial Firms who have taken over $300 billion of tax payer money to adopt rules like this? Instead it took a foreign bank to do it on their own…

http://news.yahoo.com/s/nm/20081218/bs_nm/us_creditsuisse

The gist is that Credit Suisse will be paying their senior people bonuses partially using the illiquid securities that these same people sold to the market as the basis for their large previous bonuses which the bank has subsequently had to buy back as their value has crashed. Therefore these bankers now have a direct vested interest in the long term stability of these securities.

Every bank should be required to go far further than CS went even. These banks gave out billions ($1.6 billion last year just to the CEO’s alone)in cash bonuses all on the basis of paper “profits” that were largely fueled by these investment vehicles that didn’t turn out to sustain their values and later forced these same banks to borrow from us taxpayers due to lack of liquidity. So they made money on the basis of something that didn’t turn out to be true but got to keep it while the entire world pays the price. Their bonuses should instead be forced to be directly tied to the same products they are selling and should vest gradually to force them to care about the long term value of the products they are getting paid for. Anything less is a legalized scam.