Our financial system is crumbling this week.

[clement]

Banks should just go back to being banks, and nothing more.

And they shouldn't be allowed to grow beyond a certain size, that size being "too big to fail".

If that isn't acceptable to them, then nationalize the whole system.

If only I were Dictator of the United States... Sigh...

[Arthur Dent]

Banks should just go back to being banks, and nothing more.

And they shouldn't be allowed to grow beyond a certain size, that size being "too big to fail".

I'm somewhat sympathetic to this, but I'm not sure that size of the banks is the most important issue. Lots of small failures can be as bad as a few big failures. During the S&L crisis over a thousand banks failed. That wasn't much good either. Banks, large and small, continually take on too much risk and are putting too much money in unproductive assets like homes. Bankers get to keep their gains from the good times and stick the public with the bill for their losses. This must be stopped. Our finance system needs an overhaul, but at this point it's looking like we aren't willing to take the necessary steps.

[sparks]

Interesting...very interesting...

http://news.yahoo.com/s/nm/20090204/bs_ ... achs_cfo_1

NEW YORK (Reuters) – Goldman Sachs Group Inc (GS.N) Chief Financial Officer David Viniar said the bank is keen to avoid restrictions it agreed to after receiving funds from the U.S. government late last year and it is looking to pay the money back as soon as possible.


The investment bank, which received a $10 billion capital injection from the U.S. Treasury's Troubled Asset Relief Program in October, is not happy with the strings that came attached to the money.

Wouldn't it be in everybody's best interest if they paid the money back as soon as possible? I really don't know if there is any interest on the bailout money or not (I doubt it).

It is to bad they aren't happy with the strings that are attached. I am not always happy with the strings that are attached to the loans I receive either.

[KyCardinalFan]

Interesting...very interesting...

http://news.yahoo.com/s/nm/20090204/bs_ ... achs_cfo_1

NEW YORK (Reuters) – Goldman Sachs Group Inc (GS.N) Chief Financial Officer David Viniar said the bank is keen to avoid restrictions it agreed to after receiving funds from the U.S. government late last year and it is looking to pay the money back as soon as possible.


The investment bank, which received a $10 billion capital injection from the U.S. Treasury's Troubled Asset Relief Program in October, is not happy with the strings that came attached to the money.

Wouldn't it be in everybody's best interest if they paid the money back as soon as possible? I really don't know if there is any interest on the bailout money or not (I doubt it).

It is to bad they aren't happy with the strings that are attached. I am not always happy with the strings that are attached to the loans I receive either.

Really, that's the idea. Manage your comapanies correctly and you won't need to be bailed out. Should have been done in the first place, then there wouldn't have been so many companies with their hands out.

Notice how the auto companies trimmed back their 'needs' after congress and the media discussed restrictions and held public 'floggings'?

[TimeForGuinness]

I just think it's funny...

Companies: We need money or we will collapse.
Government: Well you have to cap your salaries and...
Companies: Nevermind, we're fine.

Either:
1.) The companies really never needed the money, and they will survive.
2.) The bailout money wasn't going to help them survive anyways, so the CEO's want to make as much as they can (as quickly as they can) before the fallout.
3.) The companies have a good chance to survive, but if they crash...the CEO's still want to make their money.

[wart57]

My company just announced that we will not get any merit raises this year. At least I still have a job.

[TabascoElvis]

My company just announced that we will not get any merit raises this year. At least I still have a job.

Ours is investigating an across the board 5% wage reduction, after just laying off just shy of 1000. One of our competitors has gone to a 4 day work week without pay, so I guess 5% is better than 20%. Our whole industry is in the tank.

[Popeye_Card]

My company just announced that we will not get any merit raises this year. At least I still have a job.

I won't be surprised if we're in the same boat. My department is still doing great, but other departments are struggling to find enough work for everyone. Though it would suck to be working hard and getting business, and not see a raise--I'd rather stay at the same pay if it means other people keeping their jobs.

[wart57]

did I mention my department contributed over a billion in profit to the company?

[Hungary Jack]

did I mention my department contributed over a billion in profit to the company?

Seriously? What type of business?