Thursday, February 12, 2009

Chairman Frank Asks CEOs - Why do you need bonuses?



Barney Frank asks the same question that I asked a couple of days ago. Why do bankers need to be bribed to do the job for which they are already being paid a very high salary to do?

4 comments:

Steel Phoenix said...

The video seems to be down already.

The government has to decide whether it is going to run the banks, or if the bankers are going to run the banks. No more of this meddling and then blaming the free market. Either system has its merits, this mix has none.

I watched Barney Frank on Meet the Press last week, and felt like he was wasting my time. There were four guests and a moderator and Frank spoke over half the time, looking affronted when anyone else tried to speak, yet not saying anything useful. He can't seem to get beyond petty partisanship, and clearly has no idea how to fix the economy. He does seem to be pretty good at stating the obvious though.

Speaking of which, happy birthday Abe.

"Be the first to say what is self-evident, and you are immortal." Marie Ebner-Eschenbach

Kel said...

I didn't see Barney Frank on the Meet The Press which you are talking about but, on this occasion, where he asks why they need bonuses in order to do their jobs, I thought he was spot on.

Steel Phoenix said...

I haven't been able to see the video, and I haven't looked too deeply into the issue, but I understand they aren't so much bonuses as commissions. Either way, does the government control the banks? If so then they should put an end to this. If not, then they should quit meddling and go do their own job. What they are attempting now is complaining, which is just not helpful.

Kel said...

SP, even the bankers themselves admit that this is now an anachronism. Apparently they used to take very small pay packets which is why they got bonuses tied to performance. However, that is no longer the case. Indeed, it is very far from the case.

And, here in the UK, the government is proposing bringing an end to the practice.