Monday, October 13
The Lehman Brothers collapse
A major story i came by today when watching a news channel was that the now bankrupt investment bank Lehman Brothers arranged millions in bonuses for fired executives, as it begged for a federal lifeline. Do you think it was appropriate for these executives to walk away with millions of dollars as the company's troubles escalated?
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appropriate morally? no
ReplyDeletewas it legal? yes
In the American system of free enterprise there is not a way to limit CEO pay.
There are, however, semi-governmental agencies. With the 700 billion bill, Frannie Mae, Freddie Mac, and various banks and credit companies aided by our 700 billion WILL have a cap on what CEOs can earn annually: 1/2 million.
So the head of Freddie Mac who got 80 million in 4 recent years would only have been able to rake in 2 million. He wasn't a criminal, just greedy, and the greed was within his "right."
I do not think that the bailout was right, they should have let the market heal itself.
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