Fucked Over By Wall Street Once Again

The U.S. automakers have had their request for a bailout denied. Why? Because when the U.S. Congress gave bailout money to the bankers of Wall Street, it was misused by giving dividends and bonuses out instead of preventing foreclosures.

So now a real industry, one that actually produces something, has to come up with a plan that Congress approves prior to getting any money.

And I assure you that far more people will be hurt by the U.S. auto industry failing than any other industry in America.

Executive Compensation Under the Bailout Bill

Reclaiming Executive Bonuses

If the executive of a failed financial institution received a bonus based on information later proven to be MATERIALLY INACCURATE, the U.S. Government could go after the bonus money. But not the base salary.

Put another way, if upon valuing a firm's statement of earnings, the federal government decides it is materially inaccurate for 2005 because the value of the mortgage-backed securities was wrong, then the executive bonuses, based on the statement of earnings, can be "recovered."

This bill allows the U.S. Government to go after executive bonus or incentive pay that was based on "materially inaccurate" information. There is no limit on who that applies to. So the executives from two or four years ago who made "materially inaccurate" statements can have their big bonuses taken from them, too, as long as their firm later requires federal rescuing.

So, to get the bonus money back (and not the salary), there would need to be MATERIALLY INACCURATE information from the company, which could be made in a number of ways that Congress has not decided to fully list. And it would not need to be materially inaccurate at the time. It could be "LATER PROVEN TO BE MATERIALLY INACCURATE." The information could be statements of earning, gains, or OTHER CRITERIA. The last item is capitalized because it leaves an open door for interpretation. It could be taken to mean, conceivably, anything a bonus is based on, including media interviews that caused the stock price to move. Yes, it is rather a stretch. But still a possibility.

In short, it is more than I expected in terms of socking it to Wall Street fat cats.

Golden Parachutes

All financial firms that need U.S. Government bailout will not have "golden parachute payments to their executives while the U.S. Government stills holds stock in your firm. The least they could do, I'd say.

See the exact language below.

(B) a provision for the recovery by the financial institution of any bonus or incentive compensation paid to a senior executive officer based on statements of earnings, gains, or other criteria that are later proven to be materially
inaccurate; and
(C) a prohibition on the financial institution making any golden parachute payment to its senior executive officer during the period that the Secretary holds an equity or debt position in the financial institution.

Torture and the Pimps of Certainty

We all want to know the answer. We want to feel safe and prepared.

Unfortunately, certainty does not exist in all situations.

Those who offer a scenario (your child's life is in danger) whereby a certain solution is available (we have the guy who can save your baby, without question) are kidding themselves and the people they talk to. Of course people will do whatever it takes to save their child. But the above scenario is not the equivalent of going into a burning car to rescue your child. A child in a burning car has a readily-identifiable source of danger whose solution is apparent.

It is all too easy to convince ourselves that certainty lives in places where we need or want to see it.

I have another scenario. Your child is captured by people who will kill him. There is a person that police believe has the information to save your child. They are 50% certain of this. There is a 10% chance he has no relevant information at all. Would you support cutting off fingers then?

Destroyed CIA Tapes and the Evil Truth

Nancy Pelosi was briefed on the use of torture and OK'd it. So now hearings are being held because CIA videotapes of waterboarding were destroyed. Granted, it probably was a crime. But destroying tapes is not the real issue here. It is Nancy Pelosi's lack of courageous leadership in a time of national crisis.

So Nancy Pelosi has feet of clay because she knew of the detainee abuses and tacitly endorsed them. That's why the Democrats have been lying down on the issue of torture.

They feel they can redeem themselves by screaming and moaning about some tapes being destroyed. How about the failure to uphold the Constitution? How about being a real leader and saying "This is not acceptable."

Speaker Pelosi's claims that she did not know waterboarding was actually being done instead of being talked about are ridiculous. As soon as you hear the mention of a torture technique created during the Inquisition, you should object to any prospect of its use. Why were they talking about it to begin with, anyway? Because they were intending to use it.

Nancy Pelosi, I am ashamed and disgusted by you.