NC Attorney General goes after BoA bonuses

[babylonsister]

http://www.americablog.com/2009/02/nc-attorney-general-goes-after-boa.html

NC Attorney General goes after BoA bonuses
Chris in Paris · 2/14/2009


It's good to see someone in addition to Cuomo is calling out this revolting practice. Make a profit - as a company - and pay whatever you want. Teeter on the edge and ask for billions, be lucky you have a job. Bank of America and the banking industry need to find their own money if else or live with the consequences. Again, tear them down.

Bank of America, which has received $45 billion of taxpayer money in the last four months, should not be paying out bonuses to its employees and must justify why it is doing so, the attorney general of North Carolina, the bank's home state, said.

"I am appalled that 2008 bonuses would be distributed, given the current circumstances," Attorney General Roy Cooper said in a Feb. 12 letter to the largest U.S. bank. "I expect an explanation from the board as to the appropriateness of any bonuses while public money is being provided to the bank."

Cooper is also investigating the timing and scope of 2008 bonuses paid by Merrill Lynch, which Bank of America bought on Jan 1. The Charlotte-based bank is due to pay bonuses on Sunday, Cooper said.

The bank is cooperating with the attorney general, bank spokesman Scott Silvestri said.

Big banks are under fire from investors, politicians and regulators over bonuses amid the multibillion-dollar bailout of the U.S. financial industry.

New York Attorney General Andrew Cuomo is also investigating the Merrill bonuses. In a letter to Rep. Barney Frank, who chairs the House Financial Services Committee, Cuomo said Merrill gave at least $1 million to each of nearly 700 employees.

Silvestri said Bank of America is paying bonuses to associates based on the $4 billion it made in profit during 2008. Bonuses have been reduced by more than 60 percent, on average, from 2007, he said. Chief Executive Kenneth Lewis and other top executives are receiving no bonuses, and the next rung of executives are seeing bonus payouts cut by 80 percent, Silvestri said.

So let me see here. BoA had a profit of $4 billion but took $45 billion in taxpayer money. I'm no CPA but there seems to be a gap in the numbers by a few billion. Amazing how easy it is to pay bonuses when you have a spare $41 billion in your account. If only the rest of America had as much.

[aquart]

1. Nothing as scary as bankers' math.

[Jane Eyre]

2. NC AG Roy Cooper: Candidate for Senate in 2010?

Roy Cooper is seen by many here in NC as a top contender for the US Senate seat currently held by Republican Richard Burr. This seat is up for grabs in 2010. This is a smart move by Cooper.

[Veritas_et_Aequitas]

3. And that's why BoA is in my fantasy portfolio.

They can make money magically appear from nowhere.

[NC_Nurse]

4. Roy Cooper was one of two state AG's who sought to make stricter rules on

mortgage lending BEFORE this crisis. He was basically blown off by the Feds. He has been a tireless opponent
of predatory lending. Too bad nobody listened to him back in the day.

He would make a great Senator, IMO. :-)