Business as Usual

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Please ignore the outrage you hear from Congress about Citi almost buying a new airplane. Apparently that’s an inappropriate expenditure, but this is appropriate:

'Shameful'

Big shots on Wall Street, in Congress still don't get it

February 1, 2009

Bad habits are hard to break, but some people in America's corporate and political worlds don't even seem to be trying in the midst of the worst economic calamity since the Great Depression.

* Citigroup, recipient of some $45 billion of taxpayer funds, was blithely going about the purchase a $50 million private jet until the deal became public. Even then, the widespread public outrage didn't phase the high-fliers - but an apparent call from Treasury Secretary Timothy Geithner did. Citi meekly cancelled the purchase.

* As former Merrill Lynch CEO John Thain was agreeing to resign from Bank of America - and the newly-merged bank was requesting more government aid - it came to light that Thain had recently spent $1 million redecorating his office ($800,000 for a celebrity designer) and had doled out $4 billion in executive bonuses to favored Merrill employees just before the merger - some of the people who had driven the company in collapse and had helped it lose $15.3 billion in 2008.

* Speaking of bonuses for failure, the brokerage units along Wall Street lost more than $35 billion last year - and doled out an estimated $18.4 billion in bonuses.

Now, there are two ways to look at those bonuses. They represent a 44 percent decline from the previous year - which as New York Comptroller Thomas DiNapoli pointed out means a loss of about $1 billion in state revenue and $275 million in New York City revenue in income taxes.

But. The bonus totals are also the sixth-largest in history and the same as in 2004, when the Dow Jones Industrial Average was 10,000 and climbing.

White House press secretary Robert Gibbs characterized the gap between Wall Street compensation and Main Street hardship as "outrageous." President Obama topped him with "shameful" and "the height of irresponsibility."

The president said, "Part of what we're going to need is for folks on Wall Street who are asking for help to show some restraint and show some discipline and show some responsibility."

The same prescription can be written for Congress, where bad habits also abound.

New York's Charles Rangel and five other Democratic members of the House enjoyed a trip to the Caribbean sponsored in part by Citigroup (see above) in November - after Congress had approved the $700 bailout for financial firms (including Citigroup).

The members no doubt will object to the terms "junket," but that shoe fits. The National Legal and Policy Center, a watchdog group, has asked Neil Barofsky, the special inspector general for the Troubled Asset Relief Program (TARP) to investigate the Nov. 6-9 excursion to the island of St. Maarten.

It was called the Caribbean Multi-Cultural Business Conference, but "the primary purpose ... for most participants appeared to be to take a vacation," said the NLPC. And not only was the timing lousy, but "corporate sponsorship of such an event was banned by House rules adopted on March 1, 2007, in response to the (lobbyist Jack) Abramoff scandal," the group pointed out.

Joining Rangel on that trip were Donald Payne of New Jersey, Sheila Jackson-Lee of Texas, Carolyn Cheeks Kilpatrick of Michigan, Bennie Thompson of Mississippi and Donna Christenson, delegate from the U.S. Virgin Islands.

If they haven't already, they should reimburse the taxpayers for all expenses related to that trip - and from their own funds, not from another taxpayer pocket.

http://www.pressconnects.com/article/20090...44/1005/OPINION

The “most ethical Congress ever” hard at work watching over those Wall Street fat cats.

Hope and change.