This article makes me wonder if it designed to raise your ire? It did mine… while they rake in grotesque bonuses on phony accounting, the bankers simultaneously raise your banking and credit fees, jack up your already usurious interest rates, and hoard the money that came from the benefit of your tax dollars and future earnings.
Goldman Sachs’s Griffiths Says Pay ‘Inequality’ Helps Everyone
By Caroline Binham
Oct. 21 (Bloomberg) -- A Goldman Sachs International adviser defended compensation in the finance industry as his company plans a near-record year for pay, saying the spending will help boost the economy.
“We have to tolerate the inequality as a way to achieve greater prosperity and opportunity for all,”Brian Griffiths, who was a special adviser to former British Prime Minister Margaret Thatcher, said yesterday at a panel discussion hosted by St. Paul’s Cathedral in London. The panel’s discussion topic was, “What is the price of morality in the marketplace?”
Goldman Sachs Group Inc., based in New York, set aside $16.7 billion for compensation and benefits in the first nine months of 2009, up 46 percent from a year earlier and enough to pay each worker $527,192 for the period. The amount set aside this year is just shy of the all-time high $16.9 billion allocated in the first three quarters of 2007. Goldman Sachs spokesman Michael DuVally in New York declined to comment.
Banks in the U.K. and U.S. have been pressured by lawmakers to contain compensation amid bailouts of financial firms by national governments. Goldman Sachs repaid $10 billion plus dividends to the U.S. government this year, and resumed allocating billions of dollars for year-end bonuses after slashing compensation last year when the firm reported its first quarterly loss.
Griffiths, 67, called on bankers to boost their charitable giving to help polish the financial industry’s reputation following a worldwide crisis.
‘Much Is Expected’
“To whom much is given much is expected,” he said. “There is a sense that if you make money you are expected to give.”
Financial Services Authority Chairman Adair Turner, speaking at the same event, repeated his call for a global tax on financial transactions, a so-called Tobin Tax. He said a tax could redistribute bank profits to the world’s poor and to causes like fighting climate change.
“The role of regulation is to bring a concordance between private actions and beneficial results,” Turner, 54, said yesterday. Central bankers, lawmakers and regulators bear the greatest blame for the seeds of the financial crisis, not traders or their senior executives, he said.
James Tobin proposed a tax in 1971 on currency trading to deter speculation in the wake of the collapse of the Bretton Woods system of pegging currencies. Tobin, who died in 2002, won the 1981 Nobel Prize for his work on financial markets.
Turner told U.K. banks last month that they should place “social usefulness” above profits. Prime Minister Gordon Brown and the leader of the Anglican Church, Archbishop of Canterbury Rowan Williams, have previously warned against banks returning to “business as usual” amid concerns that momentum for policy changes in the wake of the financial crisis will subside.
Turner and Griffiths spoke at London’s 300-year-old landmark church where Winston Churchill’s funeral was held. The event was organized by the St Paul’s Institute, a group that “seeks to recapture the cathedral’s ancient role as a center of education or public debate.”
But of course, if I rob you and give a tidy portion to charity then all is forgiven, right?
Let’s count down the top 10 reasons that pay inequality helps everyone, shall we?
10. By keeping the things you own to a minimum, you have less to take care of.
9. Lower wages for you means no “domestic help” to report to the IRS, and no need for your own personal accountant!
8. It concentrates more wealth into our hands so that we can place more of our own in the Obama administration and buy more political favors from Congress!
7. Doing your own yard work and house cleaning helps to work off the anxiety and anger that you feel, and is thus good for your heart.
6. I can afford to pay for top security, and I need it as I can see that you have the urge to choke the ever loving life right out of me!
5. If you don’t have money to spend, then there won’t be inflation and thus we can keep interest rates low allowing me to super-leverage without cost!
4. If you are struggling for food and shelter, then you won’t have the time nor the means to hog tie me between two pickup trucks and simultaneously launch them in four wheel low!
3. The less you are paid, the more money the corporations we finance and control make, the bigger our bonuses will be!
2. It gives the media something to focus on besides the greatest heist in the history of the planet.
And the number 1 reason that pay inequality helps everyone is…
1. Roman hot-tubs inside of corporate box suits inside of taxpayer funded multi-billion dollar sports stadiums!
Warren Zevon - Mr Bad Example: