We all know that Congress sold us out to the financial services. these banks with huge prop desks, mortgage and derivatives enterprises were levered last year as high as 35 to 1.
So what does Congress do? Bail them out with our money. Guess what? The banks need more.
Well, first of all they could cut dividends and stop paying bonuses. Even this year the average first full year I Banking Associates at Morgan Stanley got paid a base of 125k, plus 150k in bonus. Some of the bonus in stock. True last year they got a 275k bonus, but the large banks have been effectively nationalized.
So will Congress force dividend cuts and an end to bonuses before dispersing you money? Don't count on it.
http://www.iht.com/articles/2009/01/14/business/fed.php
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