finknottle Posted February 11, 2009 Share Posted February 11, 2009 You are not understanding my point. My point is the salary of the top people insulates them from reality. A bank executive can get careless with money and make stupid loans that have no chance of getting that "certain rate of return". Those loans default. But the top guy doesn't really care because he's too busy rolling around in all the money he "steals" from the bank that he works for. In a sense, they are hoarding money because they still get their pay and bonsues while wiping out shareholder value and making the bank insolvent. Everything you said is true about the people at the bottom as well. And who is the person at the bottom? Maybe its the entry level loan officer who knows there is no way an applicant will pay off their loan, but it is bank policy or maybe even an FHA requirement to approve it. They are wiping out shareholder value, and they don't care because they are getting paid. They are even more insulated from reality than the exec's. So why do you only rail against the CEO's? What about all the employees, top to bottom, who happily drew checks while the bank owners lost their money? Do you really think that the janiter ever gave a rats ass about company value? Link to comment Share on other sites More sharing options...
DC Tom Posted February 12, 2009 Share Posted February 12, 2009 You are not understanding my point. My point is the salary of the top people insulates them from reality. A bank executive can get careless with money and make stupid loans that have no chance of getting that "certain rate of return". Those loans default. But the top guy doesn't really care because he's too busy rolling around in all the money he "steals" from the bank that he works for. In a sense, they are hoarding money because they still get their pay and bonsues while wiping out shareholder value and making the bank insolvent. And if you look at the Lehman Brothers CEO, he's the only one left with money, because he made $450 million in salary in the 10 years before it went under. Not that he should apologize for it. But the compensation levels create the reality that is Lehman Brothers. How many bank executives do you think approve sub-prime jumbo mortgages? Amazingly, you've actually twigged to the root cause of the mess: the risk management on bad loans was all sorts of screwed up. But you can't even begin to translate that to "cause"; the best you can come up with is "Corporate CEOs are the boogeymen!!! Booga booga booga!" Link to comment Share on other sites More sharing options...
RLflutie7 Posted February 12, 2009 Share Posted February 12, 2009 Everything you said is true about the people at the bottom as well. And who is the person at the bottom? Maybe its the entry level loan officer who knows there is no way an applicant will pay off their loan, but it is bank policy or maybe even an FHA requirement to approve it. They are wiping out shareholder value, and they don't care because they are getting paid. They are even more insulated from reality than the exec's. So why do you only rail against the CEO's? What about all the employees, top to bottom, who happily drew checks while the bank owners lost their money? Do you really think that the janiter ever gave a rats ass about company value? Right. And I would never work for someone, who I know is doing the wrong thing. Find other employment. And I do only rail against the CEOs because they are the ones who told the pack of lies. They lie to their employees. The lower level employess are the ones that are just doing what they are told. I was watching a show called "American Greed" on CNBC and they did a show about Health South and their accounting scandals. The CEO told employess to cook the books and then they were required to sign papers saying the numbers were right, as a part of a new law (I forget which one). So, they go through five CFOs. Because once the first one quit, the others that followed also left the company. That's the way to do it, if the guy running the thing if full of it. Link to comment Share on other sites More sharing options...
RLflutie7 Posted February 12, 2009 Share Posted February 12, 2009 How many bank executives do you think approve sub-prime jumbo mortgages? Amazingly, you've actually twigged to the root cause of the mess: the risk management on bad loans was all sorts of screwed up. But you can't even begin to translate that to "cause"; the best you can come up with is "Corporate CEOs are the boogeymen!!! Booga booga booga!" Yep. Link to comment Share on other sites More sharing options...
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