Saturday, February 23, 2019

The Banking Crisis CEO's & Salaries

by Lila M. (writer), L.A., September 19, 2008

Getting to know some of the CEO’s behind the banking crisis.

While many struggle to save their retirement funds, homes and jobs, there are a few individuals who will still take home their annual eight digit salaries. In lieu of the banking crisis, which I have also have been financially affected by, I’ve read articles and stories and checked facts on who exactly the CEO’s of these big financial corporations in distress are. I’ve put together a list of the salaries some of the ‘geniuses’ behind these falling companies will profit despite the bailout on Wall Street. Not only are these salaries unbelievable, but some of these individuals could potentially stand to gain a few more dollars when they’re companies get sold/bought/bailed out, etc.

Morgan Stanley

John Mack, CEO of Morgan Stanley, $17 million
Interesting Funfact:

Was accused in 2006 of insider trading tactics, alleging he tipped off a friend to a merger in 2001, but was cleared later of charges.

JP Morgan Chase

James Dimon, CEO of JPMorgan Chase, $20 million
Interesting Funfact:

He was forced to resign (technically fired) in 1998 from Citigroup for a huge plunge in profits which rocked the company.

Bear Stearns
James Cayne, CEO of Bear Stearns, $28 million
Interesting Funfact:

Nothing, and I mean nothing, can stop this man from a sunny day on the golf course…

"On June 14, the day when Bear Stearns reported a 10 percent drop in its operating earnings for the second quarter, Mr. Cayne was reported to be out of the office playing golf. On Thursday, June 21, as several big banks pressured Bear Stearns to increase the collateral on loans they had made to its sinking fund, Mr. Cayne was again…out of the office playing golf. The next day, in the biggest rescue of a hedge fund in almost a decade, Bear Stearns pledged to put up $3.2 billion to bail out its fund (actually $1.6).”

Lehman Brothers

Richard Fuld Jr., CEO of Lehman Bros Holdings, $71 million

Interesting Funfact:

Had multiple opportunities to sell a portion of LB even with offers as late as August of this year, which would have helped to avoid the fallout, but stubbornly refused, tuning out advice and warning signals.

Goldman Sachs

Lloyd Blankfein, CEO of Goldman Sachs Group, $73 million

Interesting Funfact:

A staunch Democrat who robustly endorsed Hillary Clinton and also contributed significantly to John Kerry's failed 2004 Presidential campaign.

Merrill Lynch

John Thain – Ceo of Merrill Lynch, $81 million

Interesting Funfact:

He is John McCain’s top economic advisor. He stands to make an extra $11m off the sale of Merrill Lynch to BofA.

All men are highly respected with Ivy-League or upscale accolades and accomplishments. Some have even agreed to ‘forego’ their bonuses, remaining firm on their salaries. Yet, not one has taken accountability for the disaster on Wall Street due to some very bad choices made at the top. Maybe all of their bonuses and lavish 1-year salaries combined should be thrown into the pot to pay for these damages. Of course this will not happen. Sadly, the taxpayers will have to eventually pay for the bailout of these big corporations.

On a more disturbing side note, the list of Forbes ‘America’s Top Paid CEO’s’ names Angelo R. Mozilo of Countrywide Financial at #4. Over the past six years, Mozilo has been collecting a paycheck averaging $66 million a year. This is most unfavorable considering the lack of responsibility Countrywide has taken on bad loans, their recent proposed sale to BofA and the bad press they have received for the biggest mass identity theft scandal thus far which includes 2 million people’s identity, loan information, social security numbers, etc. stolen by a senior Countrywide employee and sold for purposes that are still being investigated. Unfortunately I along with many others are one of the people who received the ‘identity theft’ letter from Countrywide, so it is disturbing that Mr. Mozilo makes a healthy profit annually, while under his watch, the ship was sinking.

*Numbers provided courtesy of Forbes CEO list and salaries based on stock and cash annual totals combined. Information links below to just a few of the articles noted in the fact gathering.

Morgan Stanley John Mack

JP Morgan Chase James Dimon

Bear Stearns James Cayne

Lehman Brothers Richard Fuld Jr.

Goldman Sachs Lloyd Blankfein

Merrill Lynch John Thain


About the Writer

Lila M. is a writer for BrooWaha. For more information, visit the writer's website.
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8 comments on The Banking Crisis CEO's & Salaries

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By Lila M. on September 19, 2008 at 07:51 pm

please excuse the formatting of this article.  when I uploaded it got all weird.  hope you can still make it out.

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By Jen on September 19, 2008 at 08:39 pm

There is no justification for those bloated salaries.  Gross.

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By Lila M. on September 19, 2008 at 09:01 pm

EL G – “paving the way for lenders to drop their standards for borrowers”…This is exactly what happened…they accepted bigger paychecks, while letting their guard anyone/everyone a loan knowing the dire consequences.

btw I did in fact check offenders Fannie & Freddie salaries:

Fannie – Daniel Mudd, $8 million

Freddie – Richard Syron, $20 million

Jen – Yes, you really can't understand how/why they make so much.  And it's unsettling that both candidates are seeking the economic advice of these CEO’s in their campaigns. 

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By 'Mean' Mike Duffau on September 19, 2008 at 10:30 pm

all those bums do is think about money and how to stick it to everybody else!

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By AmyO on September 20, 2008 at 01:25 am

It is pretty much guaranteed that these CEO's are going to get their bonuses when all is said and done. Those bonuses should be sent to the government to pay for the bailouts or the people whose retirement accounts have been hurt by this. Hank Greenberg said his fortune has been "devestated" by what happened with AIG because he lost $3.2 billion. Maybe he can sell of some of his houses or cars to make ends meet now. Most Americans do not have that luxury. 

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By Lila M. on September 20, 2008 at 02:13 pm

MM & Amy – Thanks, I appreciate your worthy comments.

Julian - you bring up some brilliant points.  I too know a person who bought a house that they couldn’t afford and also a guy who got sucked into working for those smarmy fly by night lenders.  To him, it was an easy job because “anyone” was a candidate, whether bad credit, no credit, previous foreclosure….whatever the case, he was told to make it work.  And the banks would approve these people who often would make less than $40K a year, with no money down, etc.  Unbelievable.  So I blame both sides, those people who bit off more than they could chew knowing they couldn’t repay and the greedy banks and lenders who just kept handing out loans like it was free turkey dinner at a homeless shelter.  

And yes it’s funny how government does not have funds for important things like healthcare, but low and behold here’s $700 billion dollars they just happen to have to bail out these bloated corporations….ultimately on our dime. 

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By Lila M. on September 24, 2008 at 06:40 pm

Julian - Great points.  I really want to know what exactly these guys do to warrant/deserve $20-80 million a year?   It's just so absurd, I really want to see their daily itinerary & list of duties.   

Morgana - thank you for the comments, and yes, I can only hope that they investigate Mozilo for his negligence.  It's just unacceptable that we put our money, faith and livelihood in the system and in these companies, while their negligent CEO's wipe their behinds with our hard earned cash.

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By Credo on October 17, 2013 at 04:25 pm

The banking tycoons have all the incentives they need to bail out, cut bait and run with their fortunes to the next debunk-able corporation.

Protecting yourself from these guys is an ongoing job.


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