Salaries go through the roof as bank after bank go down with Wall Street.
One of the beautiful things about this country is our freedom of choice. As Americans we feel the pursuit of life, liberty and whatever happiness that has no negative impact on overall society is a special gift. In comparison to hardships faced in less civilized countries around the world, it is just that; a special gift. It means we get to choose the manner in which we can and will make our way in the beautiful country of ours. I have worked just about any and every type of work there is, started by helping my landlady put out the trash cans from my 5 story walk up, I grew up in. Delivered newspapers, groceries and cleaning, worked in construction, waited tables, and cooked. I pumped gas and served in the U.S. Army, my point is customer service, I feel I have lived my life with that purpose, doing so, I always take great pride in whatever my job was, from serving Uncle Sam, to busing tables 10 hours a day. I always believed toil had value, and as such should be done to the best of one’s ability.
You choose to be a construction worker; odds are fear of heights shouldn’t be a major issue for you. The expectation will vary depending on the occupation: firefighters, nurses, doctors, policemen, these are all positions carrying special skills, obligations and responsibilities related to morals and principles that are a statement of the character of a person. Accountants, lawyers, stock brokers, financial analyst even politicians live under protocols governing improper behavior. More importantly, you should have some sense of personal integrity and pride in knowing there are those who rely on your character quietly everyday when it comes to the business of money and investments. Since the heyday of the 1980’s and the Wall Street scandals that dominated the headlines back then; names like Dennis Levine, Ivan Boesky, Mark Rich and more recently Martha Stewart, you’d think some sense of indignity would have taken hold in the industry, especially when it comes to banking and financial responsibility.
This is a group of men who during a time of national hardship with our treasure and blood is being used in a foreign land for no worthwhile cause or legitimate reason, betrayed the public trust, received obscene compensation while overseeing the downfall of our financial institutions as we knew them to be. The American’s who placed the trust and faith that their interest should always be the most important reason for them being there to be compensated has been crushed by the criminal activities of these men and demands legal action as the least. I, personally think they should be tried on the charge of treason for this happening at this time of war. I would freeze all of their assets for at least the last 3 years during which time we were first hearing about potential danger lurking with related securities in the sub-prime market. Here is a list of some of the culprits, their salaries and the companies they took down:
John Thain, Merrill Lynch
Why he’s miserable: Thain has spent much of 2008 trying to soothe investors by claiming Merrill didn’t need more capital. But he has had to repeatedly reverse himself as losses on bad mortgage bets have mounted. The write-down toll is now $40 billion, and Merrill recently sold a big chunk of its toxic security holdings for just 22 cents on the dollar. The hope is that will get Merrill headed in the right direction, “hope” being the operative word.
Why others are miserable: Merrill raised billions in December by selling stock to Singaporean sovereign wealth fund Temasek and others. But like WaMu, Merrill agreed to pay investors if its shares fell and new capital needed to be raised. Making good on that promise last month cost Merrill $2.5 billion.
What he makes: Thain made $17.3 million last year, largely reflecting a $15 million signing bonus.
What shareholders have lost: $47 billion (66%). Bespoke Investment Group notes the company’s recent market capitalization, at $25 billion, is less than the $30 billion in capital Merrill has raised.
Misery Index: 83
Kerry Killinger, Washington Mutual
Why he’s miserable: WaMu has posted three straight quarterly losses. A mid-decade push into the murkier corners of the mortgage market has forced the bank to add $12 billion to loan-loss reserves over a year.
Why others are miserable: An April sale of stock to private equity investors led by TPG cut existing shareholders’ stake in half. The stock has dropped by two-thirds since then, raising fears that another dilutive capital-raising is on the way.
What he makes: $5.2 million
What shareholders have lost: $27 billion (87%)
Misery index: 92
Richard Fuld, Jr., Lehman Brothers
Why he’s miserable: Shares have hit new lows repeatedly this year amid fears the company, which gorged on risky mortgage-related debt during the credit boom, will follow Bear Stearns into oblivion. Lehman says it’s in good shape, and Fuld duly blames short-sellers for the stock’s plunge.
Why others are miserable: In one echo of the Bear Stearns implosion, the free fall in Lehman shares has punished employees, who own some 30% of the stock. And after years of willy-nilly expansion – the firm added 12,000 jobs between 2003 and 2007 – Lehman has shed at least 2,000 jobs over the past year.
What he makes (2007 total compensation, from regulatory filings): $40 million. Fortune recently calculated that Fuld has made $489 million over the past decade cashing in his Lehman stock.
What shareholders have lost since last summer: $26 billion (a decline of 70%)
Misery Index: 110
Daniel Mudd, Fannie Mae; Richard Syron, Freddie Mac
Why they’re miserable: Years of pell-mell expansion and lax oversight have left Fannie and its smaller sibling, Freddie Mac, with a staggering $5 trillion in aggregate mortgage exposure, on less than $100 billion of capital. Not good, given the free fall of U.S. house prices over the past year and the associated rise in defaults, though Mudd earlier this year promised Fannie would “feast” on the reduced competition in the mortgage market.
Why others are miserable: Mudd and Syron have seen their shares plunge to 17-year lows in the past month, but that’s just for starters. President Bush recently signed a housing rescue bill that critics such as Sen. Jim Bunning estimate could cost taxpayers as much as $1 trillion. The Congressional Budget Office, for its part, guesses there’s a 50-50 chance a bailout can be avoided altogether.
What they make: Mudd, $11.7 million; Syron, $18.3 million
What shareholders have lost: Fannie, $52 billion (83%); Freddie, $36 billion (85%)
Misery Index: Mudd, 95; Syron, 103
Rick Wagoner, General Motors
Why he’s miserable: Wagoner led GM to big profits earlier this decade with aggressive financing deals and strong sales of trucks and SUVs. But spiking fuel prices have popped that balloon, and now GM is rushing to cut costs, slow its cash burn and finally make cars people want to buy. Wagoner, as always, says management has “the right plan for GM.”
Why others are miserable: Analysts expect to see the company raise more capital, even with shares having lost two-thirds of their value over the past year and the ratings agencies threatening further downgrades. Job cuts will reach well into the thousands – even assuming further restructurings aren’t in the offing.
What he makes: $14.4 million
What shareholders have lost: $11.5 billion (65%)
Misery Index: 79
Angelo R. Mozilo
Why he’s miserable: Mozilo testified before the United States House Committee on Oversight and Government Reform on March 7, 2008, calling reports of their pay “grossly exaggerated” in some instances and pointing out that they lost millions as well. He defended the pay: The compensation was a function of how the company did ahead of the mortgage crisis.[6]
Why others are miserable: Mozilo and Loeb also cofounded IndyMac Bank, which was founded as Countrywide Mortgage Investment, before being spun off as an independent bank in 1997. IndyMac collapsed and was seized by federal regulators on July 11, 2008.[2]
Since Countrywide was listed on the NYSE in 1984, Mozilo has sold $406 million worth of its stock, mostly obtained through stock option grants. $129 million of this was realized in the 12 months ending August 2007.[3] Mozilo testified before the United States House Committee on Oversight and Government Reform on March 7, 2008, calling reports of their pay “grossly exaggerated” in some instances and pointing out that they lost millions as well. He defended the pay: The compensation was a function of how the company did ahead of the mortgage crisis
Richard F. Syron
He served as assistant to Paul Volcker, then the chairman of the Federal Reserve Board, in 1981 and 1982, and previously served as deputy assistant secretary of the United States Treasury. In that with responsibility for developing the department’s position on all domestic economic policy issues, and extensive interaction with other executive branch agencies, Congress and the public.
Syron held a senior post at the Federal Reserve Bank of Boston from 1989 through 1994, and was a member of the Federal Reserve Board’s Open Market Committee, which sets monetary policy.
He joined the American Stock Exchange as CEO in 1994 held that post for five years, which included its merger in 1998 into the National Association of Securities Dealers.
Syron joined Thermo Electron as CEO in 1999, and moved to his current post at Freddie Mac in 2003.
In 2004, David Andrukonis, the chief risk officer of Freddie Mac, warned Syron of increasing risk in Freddie Mac’s portfolio. Syron declined to act.[1]
In December 2007, Syron told financial analysts that he expected Freddie Mac would incur heavy losses because of the weakening housing market and rising mortgage defaults. [1] Despite these forecasts, and concerns over the fiscal stability of Freddie Mac due to larger-than-expected write-offs, Syron reportedly took home over $19 million in cash, stocks, and other executive compensation in 2007. [2] Mr. Syron was terminated September 6, 2008, under a Federal Housing Finance Agency plan for conservatorship of Freddie Mac. [3][4] It is unknown as of yet if he will receive a severance package.[5]
His official biography at the Freddie Mac website is no longer available since his termination in September 2008.
James Cayne
In July 2007, Cayne was absent from New York at a bridge tournament when Bear Stearns’ hedge funds collapsed. This event was one of the causes of the subsequent global financial credit crisis.[7] In March 2008, as Bear Stearns was on the verge of bankruptcy, Cayne played bridge at a tournament in Detroit.[8]
Cayne has been the subject of various press since the Bear collapse,[9] including the fact that he has sold his stake in the company for 61 million dollars after its crash.[10]
On March 14, 2008, Charlie Gasparino of CNBC reported that the value of Cayne’s holdings in Bear Stearns had declined from $993 million to significantly less than $200 million in the wake of Bear Stearns liquidity crisis. Just days later Bear Stearns came to agreement with competitor JP Morgan for a full buyout at only $2 share, roughly $236 million for the entire firm. At the time, Cayne had significant exposure to the company’s stock, with most of his net worth tied up in shares that he had not yet exercised. It is estimated that the value of Caynes’ holdings had dropped to less than $15 million as a result, decisively removing him from the wealthiest individuals in the nation. On March 27, 2008, it was announced that Cayne sold his entire stake in Bear Stearns, over 5.61 million shares, for $10.82 a share.[11] This stake was sold prior to the vote on the renewed bid by JP Morgan for Bear Stearns. During the collapse of Bear Stearns, Cayne was competing in a bridge tournament in Nashville and was unreachable by email or cell phone, a fact for which he received much criticism.[
Martin J. Sullivan
Educated at the Sydney Russell School in Dagenham, Essex, in January 2007, he donated £50,000 to the school saying: "I would not be where I am today if it were not for the education and high standards I received there."[1]
In 1971 Sullivan joined AIU’s finance department, the non-life UK company of AIG. In 1974, he joined the Property Department and held a succession of underwriting and management assignments in the UK and Ireland. In 1983, Sullivan was appointed Property Manager for the UK and later Regional Property Manager for the UK/Ireland. In 1988 Sullivan became UK/Ireland Marketing Manager of AIU. Sullivan was appointed Assistant Managing Director of AIG Europe (UK) Ltd. in 1989 and Chief Operating Officer in 1991. In 1993 he was named President of AIU’s UK/Ireland Division and Managing Director of AIG Europe (UK) Ltd. Sullivan became Senior Vice President, Foreign General Insurance in 1996, and Executive Vice President, Foreign General in 1998.
In 1996 he was appointed Chief Operating Officer of AIU in New York and named President in 1997. He was elected to the Board of AIG in May 2002. Sullivan succeeded Maurice R. Greenberg, who stepped down as AIG’s CEO amidst an accounting scandal. He was replaced as CEO by Robert Willumstad on June 15, 2008. On October 7, 2008, Sullivan testified before the United States House Committee on Oversight and Government Reform on Capitol Hill regarding the causes and effects of the bailout of AIG.[2][3]
G. Kennedy “Ken” Thompson
is an American businessman who was previously chairman, president, and CEO of Wachovia Corporation, formerly First Union Corporation, from 2000 through 2008.[1] First Union Corporation acquired Wachovia Corporation and changed its name to Wachovia in September 2001 after fending off a hostile takeover attempt by SunTrust Bank. Thompson succeeded Edward E. Crutchfield in 2000, who stepped down due to health reasons. Previous positions at First Union included vice chairman of the corporation and head of Global Capital Markets; president, First Union-Florida; senior vice president and head of First Union Human Resources; president, First Union Georgia. Thompson was pushed out of Wachovia Bank (WB) on June 2, 2008 as head of the nation’s fourth-largest bank, becoming the latest financial services executive to be ousted amid turmoil in the U.S. housing market. Thompson will not receive any incentive pay for the 2008 fiscal year, but according to a filing with the Securities and Exchange Commission, he will get a severance of $1.45 million and accelerated vesting of $7.25 million in restricted stock. Thompson had served the company for 32 years.