May 26, 2011
I’m writing because my family and I were affected by the economic collapse of 2008, and we don’t want it to happen again.
Wall Street greed and outrageous pay practices were a major cause of the collapse. One way to change the incentives so they don’t collapse our economy again would be to delay the bonuses for three, five or more years. That way, we’ll know if the loans they made in year one remain good. In the bad days, bankers paid themselves on the volume of loans (mortgages) they generated, not on their quality.
Frankly, I think if a bank or any financial institution fails, the management should get NO bonus at all and they certainly shouldn't get a raise. Why pay these guys for basically running their company into the ground and letting the public and their employees shoulder the burden? They should be thankful they still have jobs (if they do) and no 'golden parachute' either. They should be fined, fired and tossed out on the street along with the hundreds of other people they put out of jobs, homes, etc.
Thank you for considering my comment,
Martha Johnson
concord, CA