File Under: Who Didn't See This Coming

#1
volinbham

volinbham

VN GURU
Joined
Oct 21, 2004
Messages
69,784
Likes
62,462
#1
The Obama administration has begun serious talks about how it can change compensation practices across the financial-services industry, including at companies that did not receive federal bailout money, according to people familiar with the matter.
Click to expand...

In an indication of how broad the effort may become, Federal Deposit Insurance Corp. Chairman Sheila Bair said regulators need to examine compensation practices in the mortgage industry, suggesting new limits could stretch beyond banks.
Click to expand...

Here we go. The Healthcare plan will get doctors - here's the plan to cap the pay of bankers and Wall St.

Which industry is next?

U.S. Eyes Bank Pay Overhaul - WSJ.com
 
#2
#2
I anticipate an invite to you and LG to join the POTUS for a beer. You need some teaching.
 
#6
#6
i love the fact that they aren't actually going to set a limit. so what the hell is the point exactly? except the demonization of american business that is.
 
#8
#8
I thank you for quoting the part of the article that said they aren't talking about limiting compensation, just coming up with ways to encourage or regulate things like the mortgage industry so that they pay based on the long-term consequences of what they are doing. As opposed to Bob and Joe voting to bonus each other $80 krillion because they sold or bought a bunch of guaranteed failed loans that made that particular quarter look awesome.

Oh, wait. You didn't include that part.
 
#9
#9
lawgator1 said:
I thank you for quoting the part of the article that said they aren't talking about limiting compensation, just coming up with ways to encourage or regulate things like the mortgage industry so that they pay based on the long-term consequences of what they are doing. As opposed to Bob and Joe voting to bonus each other $80 krillion because they sold or bought a bunch of guaranteed failed loans that made that particular quarter look awesome.

Oh, wait. You didn't include that part.
Click to expand...

I didn't include it for 2 reasons:

1. You can read.

2. The broader point is further government intrusion into the private sector. No TARP, no bailout? Don't tell how I can pay my employees. That's the purview of the OWNERS of the company (eg. shareholders).

Assuming that Barney Frank, the SEC, Fed and Treasury know better how to run a business than the management of these companies is ridiculous.
 
#11
#11
Anyone care to explain how this would be regulated?

Among ideas being discussed are Fed rules that would curb banks' ability to pay employees in a way that would threaten the "safety and soundness" of the bank -- such as paying loan officers for the volume of business they do, not the quality.
Click to expand...

Tell me what defines "quality" in a loan.

Tell me when you know that a loan is "quality" - what does "long-term" mean in this case?

Tell me why the bank can't tighten rules on what loans would be accepted then continue to pay loan officers on volume of qualified loans generated?
 
#12
#12
volinbham said:
Anyone care to explain how this would be regulated?



Tell me what defines "quality" in a loan.

Tell me when you know that a loan is "quality" - what does "long-term" mean in this case?

Tell me why the bank can't tighten rules on what loans would be accepted then continue to pay loan officers on volume of qualified loans generated?
Click to expand...

Easily. Limit the pay, fill the tanks with dead end clowns without aspirations and limit the industry to about three companies that can make any money. Then, only seriously qualified people sill be able to borrow money from about 5 lenders and the conduit market will cease to exist.

My advice, own apartments.
Posted via VolNation Mobile
 
#13
#13
lawgator1 said:
As opposed to Bob and Joe voting to bonus each other $80 krillion because they sold or bought a bunch of guaranteed failed loans that made that particular quarter look awesome.
Click to expand...

your lack of knowledge about financial companies and the way they work is truly staggering. but you are right companies always give million $$$ bonuses for no reason.

this whole thing is about class envy. nothing more, nothings less.
 
#14
#14
droski said:
your lack of knowledge about financial companies and the way they work is truly staggering. but you are right companies always give million $$$ bonuses for no reason.

this whole thing is about class envy. nothing more, nothings less.
Click to expand...
Thats his very poorly veiled schtick in any economic or financial discussion. It's what you do if you side with the emotional, whiny and financially lost.
Posted via VolNation Mobile
 
#15
#15
volinbham said:
I didn't include it for 2 reasons:

1. You can read.

2. The broader point is further government intrusion into the private sector. No TARP, no bailout? Don't tell how I can pay my employees. That's the purview of the OWNERS of the company (eg. shareholders).

Assuming that Barney Frank, the SEC, Fed and Treasury know better how to run a business than the management of these companies is ridiculous.
Click to expand...


Do you not agree that a significant contributor to the housing bubble was that workers (and lenders) in the mortgage industry promoted fast lending and irresponsible lending, as well as packaging and sales of mortgage securities, and that those who bought and sold these mortgages, and then the resulting securities, were doing so in large part to stay on top of the wave? And that they got bonused in many cases huge sums of money even though all they were doing was bringing in crap paper? But no one cared because everyone else was bringing in crap paper? And that others further up the line were more than happy to pay for crap paper because someone else even further up the line was willing to pay a premium for the crap paper?

I am not saying that this was THE thing that caused it. Certainly borrowers have a lot of culpability, too. As do regulators.

I guess Ijust don't see in theory anything all that draconian about coming up with ways to encourage or even require that comepnsation packages (which can still be enormous, by the way) just be built on a longer-term result than the churning that was going on in that industry and that has played a major role, if not been the catalyst, for an economic donwturn that has hurt everyone.
 
#16
#16
lawgator1 said:
Do you not agree that a significant contributor to the housing bubble was that workers (and lenders) in the mortgage industry promoted fast lending and irresponsible lending, as well as packaging and sales of mortgage securities, and that those who bought and sold these mortgages, and then the resulting securities, were doing so in large part to stay on top of the wave? And that they got bonused in many cases huge sums of money even though all they were doing was bringing in crap paper? But no one cared because everyone else was bringing in crap paper? And that others further up the line were more than happy to pay for crap paper because someone else even further up the line was willing to pay a premium for the crap paper?

I am not saying that this was THE thing that caused it. Certainly borrowers have a lot of culpability, too. As do regulators.

I guess Ijust don't see in theory anything all that draconian about coming up with ways to encourage or even require that comepnsation packages (which can still be enormous, by the way) just be built on a longer-term result than the churning that was going on in that industry and that has played a major role, if not been the catalyst, for an economic donwturn that has hurt everyone.
Click to expand...

Irresponsible lending is clearly a problem, but generally for the lenders.
Posted via VolNation Mobile
 
#17
#17
Here's my plan for LG's compensation. You don't get paid until we can see the long-term results of your defense work. For example, if someone you defend commits some crime or offense within 5 years then you don't get paid. We need to ensure that only quality defendants are being represented so we need an observation period to ensure this. Your pay will also be limited by the quality of the person you defend. This will be assessed at their life-end.
 
#18
#18
lawgator1 said:
Do you not agree that a significant contributor to the housing bubble was that workers (and lenders) in the mortgage industry promoted fast lending and irresponsible lending, as well as packaging and sales of mortgage securities, and that those who bought and sold these mortgages, and then the resulting securities, were doing so in large part to stay on top of the wave? And that they got bonused in many cases huge sums of money even though all they were doing was bringing in crap paper? But no one cared because everyone else was bringing in crap paper? And that others further up the line were more than happy to pay for crap paper because someone else even further up the line was willing to pay a premium for the crap paper?

I am not saying that this was THE thing that caused it. Certainly borrowers have a lot of culpability, too. As do regulators.

I guess Ijust don't see in theory anything all that draconian about coming up with ways to encourage or even require that comepnsation packages (which can still be enormous, by the way) just be built on a longer-term result than the churning that was going on in that industry and that has played a major role, if not been the catalyst, for an economic donwturn that has hurt everyone.
Click to expand...

Pay regulation is probably the worst way to address these issues.
 
#19
#19
Do you really think that these banks would have bought billions of these mortgages if they thought they were crap? you act like they dumped these mortgages on joe public or something.
 
#20
#20
volinbham said:
Here's my plan for LG's compensation. You don't get paid until we can see the long-term results of your defense work. For example, if someone you defend commits some crime or offense within 5 years then you don't get paid. We need to ensure that only quality defendants are being represented so we need an observation period to ensure this. Your pay will also be limited by the quality of the person you defend. This will be assessed at their life-end.
Click to expand...


That would be a fair comparison if my work and compensation were based on meeting some goal of just bringin in clients or cases, as opposed to waiting until payment was made, and if I got bonused for some sort of short-term goal, which I don't. In fact, I don't get paid until my bills are coallated, then sent off, then reivewed, then ok'd.

I will agree with you that there is the potential for government over-reaching and over-reacting in a program that will monitor and limit the manner in which compensation is paid if you will agree with me that in theory there isn't much difference between regulating the formula for compensating an individual employee (not in amount, but in terms of time frame for performance standards) and limiting bank fees or interest rates, which we already do.

All I'm saying is that the theory is not necessarily a problem and that the devil is in the details, which we don't see yet.
 
#21
#21
lawgator1 said:
All I'm saying is that the theory is not necessarily a problem
Click to expand...

you really trust the gov't to set compensation? you really think they know enough about these industries? you do realize this is a meaningless bill which will amount to nothing and it's just postering right?
 
#22
#22
lawgator1 said:
That would be a fair comparison if my work and compensation were based on meeting some goal of just bringin in clients or cases, as opposed to waiting until payment was made, and if I got bonused for some sort of short-term goal, which I don't. In fact, I don't get paid until my bills are coallated, then sent off, then reivewed, then ok'd.

I will agree with you that there is the potential for government over-reaching and over-reacting in a program that will monitor and limit the manner in which compensation is paid if you will agree with me that in theory there isn't much difference between regulating the formula for compensating an individual employee (not in amount, but in terms of time frame for performance standards) and limiting bank fees or interest rates, which we already do.

All I'm saying is that the theory is not necessarily a problem and that the devil is in the details, which we don't see yet.
Click to expand...

Gunnery Sergeant Hartman comes to mind......... No $#it!

You and the rest of your kind need a circle jerk in front of the white house........

Ermey.jpg

 
#23
#23
droski said:
you really trust the gov't to set compensation? you really think they know enough about these industries? you do realize this is a meaningless bill which will amount to nothing and just postering right?
Click to expand...

Absolutely he does, Barney Frank knows all!
 
#24
#24
volinbham said:
I didn't include it for 2 reasons:

1. You can read.

2. The broader point is further government intrusion into the private sector. No TARP, no bailout? Don't tell how I can pay my employees. That's the purview of the OWNERS of the company (eg. shareholders).

Assuming that Barney Frank, the SEC, Fed and Treasury know better how to run a business than the management of these companies is ridiculous.
Click to expand...


On what do you base this assumption? :popcorn:
 
#25
#25
It is amazing people demonize business as satan but then look to politicians to fix the problem.

I mean really, the slut on the corner wiping her mouth would have a better shot at straigtening out the economy than our elected fools.
 
New posts
You must log in or register to reply here.

VN Store



Back
Top