In the 1980s, those partners retired and were replaced by hired hands who were now agents and not principals. They'd become the managers of other people's money -- initially diverse shareholders and now at the troubled firms, the nation's taxpayers. Not only were their mutton chops, long lunches at Delmonico's, and afternoon strolls to the counting house before tea -- all long gone -- but so are the days of I-bankers risking their own money -- until this new Obama plan.
Ignoring this structural change, some bankers still long for the lush good old days. The pay plan's critics rush to tortured ideological claims of government intrusion into private enterprise - despite the logic that this moral and intellectual claim was buried once these firms threw their fate into the government's arms. Employers at a firm like AIG (AIG) -- with 80% government ownership -- surely must privately admit that they are virtually civil servants now and drop past illusions of princely lifestyles. The fair yardstick then must be the salaries then of top public officials.
With President Obama earning only $400,000 annually, Vice President Joe Biden earning $221,000, House Speaker Nancy Pelosi and U.S. Chief Justice John Roberts earning a mere $217,000 with U.S. Senator s and federal judges earning far less -- the $500,000 for financiers whose companies are on the public dole looks pretty good. The deal looks even better when you add in the stock incentives' upside potential of enormous wealth for good performance.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV