27
Jan
09

Paid for Their Incompetence with our Dollars

Here’s the part that really makes the old blood boil!  Our economy is in the worst shape that its ever been in, along with causing extreme hardship throughout the international community and today there’s no one’s to blame?

Unbelievable!

Come-on give me a break, the banker are the people who got us in this condition and possibly be in jail, but where are they: They’re still in charge of the banks that have got us in this predicament.

Here’s an interesting article from the AP Online Newswire Service stating nine out of every 10 of the most senior bank executives from 2006 are still on the job.

AP IMPACT: US bets on bank execs to fix this mess

By MATT APUZZO and DANIEL WAGNER
Associated Press Writers
Jan 27, 3:54 AM EST

WASHINGTON (AP) — They’ve been bailed out, but not kicked out. At banks that are receiving federal bailout money nearly nine out of every 10 of the most senior executives from 2006 are still on the job, according to an Associated Press analysis of regulatory and company documents.

The AP’s review reveals one of the ironies of the bank bailout: The same executives who were at the controls as the banking system nearly collapsed are the ones the government is counting on to help save it.

Even top executives whose banks made such risky loans they imperiled the economy have been largely spared any threat to their jobs, as Washington pumped billions in taxpayer money into the companies. Less fortunate are more than 100,000 bank employees laid off during a two-year stretch when industry unemployment nearly tripled, bank stocks plummeted and credit dried up.

Wells Fargo & Co., for example, once was among the top lenders of subprime mortgages, or loans to buyers with low credit scores. The company received $25 billion in bailout money and plans layoffs in the coming months. But longtime CEO Richard Kovacevich remains the company’s chairman, and the board recently waived its mandatory retirement age for him. John Stumpf, the president since 2005, became chief executive in 2007.

Under the government’s no-strings-attached bailout plan, taxpayers must take it on faith that bank executives will make better decisions this time around, said Jamie Court, president of the California-based group Consumer Watchdog.  “When you deal with the same dogs, you’re going to end up with the same fleas,” Court said.

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