Why is it not a crime? the CEOs that used the first bailout money for bonuses for themselves..Vacations & jets?

Warren D

Contrary to common belief the majority of CEO's are not paid huge salaries. Many of them lead small corporations and are paid salaries more in line with what the majority of us aspire to. Some school superintendents and even athletic directors are paid more.

We hear about the CEO's of some of the Fortune 500 companies who receive the huge perks and big salaries. Sadly, these are often paid whether the companies are in the red or in the black.

I am not and probably never will be CEO of anything, but if I were one and if my company was not doing all that well I would return any bonuses and probably turn back as much of my salary as I could afford to lose and still keep my household running.

Probably some of the hated CEO's have done just that. Many have not. It is not a crime because our government did not choose to make laws prohibiting it.

I'm generally not on board with the bailout packages that have been put forward, although I share the alarm which triggered them. Some corporations probably need to fail. I would try to do what was necessary to protect shareholders--the majority of whom are small investors.

Since so much of our economy is based on credit there is almost no way to correct the current economic problems without hurting people, so the bandaid approach is probably what we can expect from here on out.

Meanwhile I would be a little more selective about condemning the CEO's. Some deserve it; many do not. The better ones may hold the key to a more successful economic future for all of us.

Veritas et Aequitas (ï£¿)

Some of this stuff is cost of business. It's just the way corporations run. The inner workings of a Corp. do call for the jets and "vacations". But I think it was just bad prep on Congress not setting ground rules on the money. I think the trips and jets are fine just as long as they aren't for personal use.

But that said, I think if you can't afford to buy your own jet and your own vacations/business trips, you should just be allowed to fail as a business and fade into the wind. I'm against the whole bailout money giveaway anyways.

Curtis

Because it was not stipulated what they have to do with the money.

This bailout is a sham, and a fraud, and Bush, and Obama, should be impeached.

Mrs. Herrera

It is not a crime because there was not contractual obligations as to what the money could or couldn't be spent on leaving it open to the CEO's discretion.

Steph

The crime is there not being someone to monitor what the bailout money was being used for.

Call Me Bwana

They were given the money without any caveats regarding how it was to be spent. The government assumption that it would be spent giving out loans was just that - an assumption.

I don't recall any limitations imposed by the government on how they were to run their businesses, or any requirement to eliminate bonuses or other standard business practices (like retreats or new transportation or what not).

They're not breaking any laws. How can they go to jail?

There's a reason why so many conservatives have long been against this kind of giving of taxpayer money to businesses. It can only go bad.

...

Probably because the idiots that gave them the money didn't specify what it could and could not be used for.

Still, they should be sued and made to pay it back for their recklessness and bad business decisions which are affecting the whole country.

If fact I would not be surprised if it qualified as fraud

Information Police

It should be a crime. How can a bankrupt company justify giving bonuses to anyone???

u_bin_called

Let's think about this one ... Congress came up with the "bailout"... Congress also comes up with the Law ... Therefore, the reason it's not a crime is because Congress failed to attach any conditions to the "bailout" ... And if you really think about it, you'll notice that the same guys complaining about "CEO greed" are the same ones who railroaded the bailout through before any oversight could be added...

lisa bee

The bigger crime is that while the banks are being bailed out the little working man with the loan is still paying on them, why is that we still have to pay these loans, then pay the taxes for the bailout?

yellow_tofu

its b/c the gov't was so smart they gace all the money out with out setting up restrictions. I do not believe they should have even been a bail out. Capitolism is not about gov't interfering in the workings of banks. I believe that people who cant pay for their homes and cars, should not get anything they should lose thier house and car, and the bank should sell them to other at a discount. instead we have become a country for greedy politicans/business men, and fat lazy people who want gov't hand outs.

Sassalin

It should be a crime.

remoserjr107

They all all Greedy Crooks, laughing at The Lowering Number of Tax-Payers.....!!

Boo

The crime is that our politicians voted for the bailout. Not the CEO's who asked for it. Get your priorities straight.

zaphod73@att.net

Greedy is as greedy does!

rickinnocal

Most of the bonus moneys went not to top executives but to regular employees.

The reason it was paid was that it was part of the employees contracted salary, and a contract cannot be changed retroactively.

A bond salesman's pay, for example, might be $5,000 a month, plus a bonus of 1% of everything he sells. If he sold $1,000,000 of bonds then he is entitled to a $10,000 bonus. To not pay it would be a retroactive reduction in his salary, which is a violation of Federal law.

Richard

Broken Veteran

Wear a tie? You are a criminal in my book.

Taking advantage of your fellow Americans is a crime.

A bad person is one who wants more than the other guy.
This does not make a good society.
I makes a few rich and many poor.
It is rectified by revolution.

CEOs days are numbered.
I will sit here and watch them fall...

musicman812

Obama is speaking right now -- he just capped executive salaries @ $500,000 w/ no bonuses/golden parachutes until the taxpayers are paid back for their assistance.

I agree w/ Obama on this one.

But, I probably would've taken it one step further and say that if we find out any excessive money is spent -- vacations/meetings in LV/LaJolla/etc.etc...we have the right to take all of our bailout money back. Behave or face bankruptcy and/or unemployment.

FozzieBear

Many of the banks were FORCED to take the money. They were in fine financial shape and didn't want it. Many of them are not asking for more.

Regarding other large purchases and expenditures - these things were set in motion months or even years ago with contractual obligations. It would cost them almost as much to pull out of the deal.

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