Mark Malaszczyk
It's reality check time for the fat cats
By Mark Malaszczyk
In case you didn't get to read about it this week, Richard M. Kovacevich, the Chairman of Wells Fargo Bank, was emphatic in his outrage over Secretary Paulson's call for the CEO's of the nine largest banks in America to sign off on selling shares to the Federal Government.
Kovacevich complained that his bank was being forced into something that they didn't need — Wells Fargo didn't get into the slimy sub-prime lending dynamic, and shouldn't be compelled to participate in a socialist solution to the problem — OK, The Bottom Line agrees..........
But then the real problem came to the surface....remember, the thing about sloths is that they can hold their breath under water for a while, but then they must come up for air.........
Kovacevich complained about the limitations on executive compensation that would be placed on the CEO's of banks that participate in the bailout plan. As the New York Times reported, Kovacevich would be entitled to a $43 million dollar retirement package with an additional $140 million dollars in stock and options if he steps down after the Wachovia deal is completed. Even though industry experts claim that Kovacevich's golden parachute would not be impacted by the new rules, he still expressed his dismay.
Is he kidding?
I am an advocate of the free-market...I am a Libertarian Convert from Reagan Republicanism.....but this type of decadence must be kept in check — does Kovacevich read anything other than his bank statements?!?!?!
People are losing their homes, their life savings, and their jobs....kids are going without health care.....schools are struggling to operate with threats of Tax Caps looming, and he's concerned about his $183 million dollar exit from Wells Fargo......
While free-market capitalism is still the best bet for a democratic society to grow and prosper, it must also be understood that greed and gluttony [in all of its forms] are sins in every major faith.........
I have lost my patience with the muckety-mucks of the financial world — they live in their own little bubble of chardonnay and brie — the problem is when their bubble bursts, it's the rest of us who get soiled,...and soaked for the money to save their sorry souls.
© Mark Malaszczyk
In case you didn't get to read about it this week, Richard M. Kovacevich, the Chairman of Wells Fargo Bank, was emphatic in his outrage over Secretary Paulson's call for the CEO's of the nine largest banks in America to sign off on selling shares to the Federal Government.
Kovacevich complained that his bank was being forced into something that they didn't need — Wells Fargo didn't get into the slimy sub-prime lending dynamic, and shouldn't be compelled to participate in a socialist solution to the problem — OK, The Bottom Line agrees..........
But then the real problem came to the surface....remember, the thing about sloths is that they can hold their breath under water for a while, but then they must come up for air.........
Kovacevich complained about the limitations on executive compensation that would be placed on the CEO's of banks that participate in the bailout plan. As the New York Times reported, Kovacevich would be entitled to a $43 million dollar retirement package with an additional $140 million dollars in stock and options if he steps down after the Wachovia deal is completed. Even though industry experts claim that Kovacevich's golden parachute would not be impacted by the new rules, he still expressed his dismay.
Is he kidding?
I am an advocate of the free-market...I am a Libertarian Convert from Reagan Republicanism.....but this type of decadence must be kept in check — does Kovacevich read anything other than his bank statements?!?!?!
People are losing their homes, their life savings, and their jobs....kids are going without health care.....schools are struggling to operate with threats of Tax Caps looming, and he's concerned about his $183 million dollar exit from Wells Fargo......
While free-market capitalism is still the best bet for a democratic society to grow and prosper, it must also be understood that greed and gluttony [in all of its forms] are sins in every major faith.........
I have lost my patience with the muckety-mucks of the financial world — they live in their own little bubble of chardonnay and brie — the problem is when their bubble bursts, it's the rest of us who get soiled,...and soaked for the money to save their sorry souls.
© Mark Malaszczyk
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