Fred "the shred" Goodwin ignores shareholder vote, will keep annual $1 million

So much for shareholder voting that has no teeth. Last year Obama raised the issue of shareholder voting on compensation plans for executives yet he promoted non-binding votes. As I said back then, such a plan or worthless and this RBS example shows why. (I'm hopeful that Obama might see this differently today. Unless the Rubin/Summers camp gets to him first, at least.) Shareholders at RBS - one of the worst hit UK banks and now alive only thanks to the government - voted against Fred Goodwin's $1 million per year retirement plan and Goodwin has decided to ignore the non-binding vote and do as he pleases. Perhaps the new CEO can reflect on this problem before he asks for an end to the "public flogging" of the troubled bank.

Sir Fred Goodwin was defiantly refusing to last night hand back any of his £703,000-a-year pension even though Royal Bank of Scotland's shareholders voted decisively against the bank's pay policies at a hostile annual meeting in Edinburgh.

Goodwin was said to be unrepentant even though the chairman, Sir Philip Hampton, made fresh efforts this week to convince the former RBS chief executive to reduce the size of his £16.9m pension pot which was doubled during the October weekend the bank was bailed out by the taxpayer.

As Hampton called for an end to the "public flogging" of RBS bankers, he revealed he had once again phoned Goodwin this week to point out the damage the pension row had caused the reputation of the bank. "I wouldn't want to suggest he's becoming warmer to the idea," Hampton said.

To his credit, Fred "the shred" Goodwin is a "Sir" after all and he probably knows proper etiquette in the presence of the Queen. We all know how critical that is, especially for someone who ought to be the target of a massive fraud investigation and heading to prison. Better still, he's a Harvard MBA so clearly he's part of the best and brightest along with George Bush. Maybe we ought to think more about his pedigree and let it all blow over. Read More......

Banksters furious at G20 calls for regulation

My heart really goes out to the poor chaps. They've done so well and helped the world until it hurt. How dare anyone asks for accountability! Shameful! Disgraceful! Can't they all mind their own business and let banksters work in peace? Who do they think they are? Shareholders that aren't joined at the hip with management? Sure the G20 punks own them and have kept them afloat with a lifestyle above the rest including juicy bonuses but besides that, who do they think they are? Outrageous!

Bankers are furious about the possible collapse of a system that inflated their basic pay: thousands of City jobs pay between £80,000 and £110,000 a year, with another £30,000 to £50,000 from bonuses, whilst senior management enjoyed multi-million pound bonuses.

"Salaries in the banking and corporate finance world are not outrageous. The big reward is in the bonus," said Larry Schechter, a director at Schechter & Co, a boutique investment bank in Mayfair. "I am not a proponent of arbitrary compensation restrictions. I believe that bonuses - the rewards - should be commensurate with the level of success. You cannot have the whip without the carrot, and vice versa."

The G20 wants to restrict compensation that rewards short term risk-taking. Investment bankers banks received bonuses for taking big bets in the markets that may have led to longer term losses.

Many bought complex derivative contracts that proved to be worthless and now count among the toxic assets sitting on banks' balance sheets. They lent millions to companies that cannot repay their loans and must lay off thousands of staff.

Right, so bankers are paid just like any other person on the street. That's a good one. So now they're trying their hand at comedy. If they wondered why they are hated so much, they can stop the search. Read More......

GOP talking points lead to shooting rampage, 3 cops dead

Well, he says Obama was going to take his guns away, and that's why he needed to kill 3 police officers today. What radio show do you think he listens to? What TV network do you think he watches? And what party do you think he votes for?

Remember what Palin and McCain were doing to their crowds during the campaign, the way they were pushing people towards viewing Obama as a terrorist hell-bent on destroying our country? The way Republicans today says that we need a "revolution" to stop the "socialism" and the "fascism" that is Obama?

And we're supposed to wonder why crazy people act out violently after being told that Obama is a terrorist, out to destroy our country, and that the only solution is to rise up in a revolution against the enemy.

AP:

A gunman wearing a bulletproof vest and "lying in wait" opened fire on officers responding to a domestic disturbance call Saturday, killing three of them and turning a quiet Pittsburgh street into a battlefield, police said.

Police Chief Nate Harper said the motive for the shooting isn't clear, but friends said the gunman recently had been upset about losing his job and feared the Obama administration was poised to ban guns....

Poplawski had feared "the Obama gun ban that's on the way" and "didn't like our rights being infringed upon," said Edward Perkovic, his best friend....

Another longtime friend, Aaron Vire, said Poplawski feared that President Barack Obama was going to take away his rights, though he said he "wasn't violently against Obama."

Read More......

Imagine them doing this for Bush, or McCain

Baden-Baden, Germany. I think the guy is even wearing an Obama t-shirt. And yes, they may be American. But no American would have dared don a George Bush t-shirt, and hang a welcome sign out their window, last year - lest the neighbors run them out of town by pitchfork. From AP:

Read More......

Summers is a massive conflict of interest

Sure, Wall Street loves the guy, but whose side is he on? And why does Obama continue to let Summers dictate economic policy?

Besides working with Republicans and Wall Street to implement the disastrous economic policies that led to our current crisis, Larry Summers has been cashing in Phil Gramm-style with the people that he helped get rich. Somehow we're now supposed to believe that Summers received millions of dollars from Wall Street and there's no catch.

Lawrence Summers, a top economic adviser to U.S. President Barack Obama, was paid about $5.2 million by hedge fund D.E. Shaw in the past year, financial disclosure forms released by the White House showed on Friday.

Summers, a former U.S. Treasury secretary and Harvard University president, also was paid $2.7 million in speaking fees by a range of organizations and companies, including several troubled Wall Street financial firms, they showed.

The disclosure documents on Summers and other White House officials advising Obama on the global financial crisis covered 2008 and the first few months of this year. Summers became an official adviser on January 20 when Obama took office.

Summers, who was a part-time managing director of D.E. Shaw after stepping down as Harvard president, had speaking fees of $67,500 from JP Morgan, $45,000 from Citigroup, $135,000 from Goldman Sachs and $67,500 from Lehman Brothers, which went bankrupt in the mortgage crisis last year.

For the rest of the country, there is an enormous conflict of interest. Let Larry Summers work for Wall Street or let him work for the American public but it's not possible to do both. This again raises the problem of the Obama economic team being too cozy with Wall Street. How can anyone trust them to do what is in the best interest of the country when they are receiving so much money from Wall Street?

By allowing Summers to remain as the de facto economic leader of the Obama administration, there will always be suspicions about his plans. The Democrats have deluded themselves into believing that somehow they can defend the best interest of the country while handing the keys to the economy to people like Summers. Yesterday at the Town Hall event in Strasbourg, Obama made a comment about people wanting an instant fix or else viewing it as a failure. The frustration for too many Americans is not so much that Obama's plans are not working immediately, but that the team is the wrong team. The approach is the wrong approach. Going back to the people who helped bring on the crisis, or who were supposed to be overseeing Wall Street when the crisis happened, is what angers Americans. Mistakes can and will happen. Most can accept that, but they will not accept it under these circumstances.

People may not give as much leeway to Summers or Geithner because of their history, and that's Obama's problem. This is the team that he chose, for reasons which don't make sense to many. If Obama is serious about the economy he will unload this team as quickly as possible. But there is little to suggest that he will. That's a real pity for all of us. Read More......

Palin to Levi: Stop exploiting my family for fame and fortune like I did

Precious new quote from a Palin representative, below. Palin is upset that her once-to-be son-in-law is going on TV and trash-talking her (including saying that he's sure she knew he and Palin's unwed daughter were having sex under Palin's roof):

"We're disappointed that Levi and his family, in a quest for fame, attention and fortune, are engaging in flat-out lies, gross exaggeration, and even distortion of their relationship," [Palin spokesperson] Meghan Stapleton tells Usmagazine.com in a statement Friday.

"Bristol's focus will remain on raising Tripp, completing her education, and advocating abstinence," Stapleton continues. "It is unfortunate that Levi finds it more appealing to exploit his previous relationship with Bristol than to contribute to the well being of the child."

Uh huh. This from the lady who pretty much forced her daughter into a shotgun wedding in order to advance her own political career. Remember, it was Palin and McCain who announced the news of the unwed pregnancy to the media - none of us knew until they put it in a press release. And it was Palin and McCain who brought these poor kids to Washington and put them on the stage at the Republican convention. And let's talk about her special-needs child, who she loves to mention in her political speeches - the one she wasn't nearly as concerned about the day she went into labor, halfway around the country, but rather than return home, she went and gave a speech.

Yes, lectures from Sarah Palin about exploiting one's family. Now that's precious. Especially with the ridiculous comment inserted, above, about Bristol devoting her life to abstinence education. What?! Bristol already said she questions the notion of abstinence. But in any case, it's yet another example of Palin exploiting her family for fame, attention and fortune. And doing it in such a crass way that it only confirms what a blithering idiot she is, was, and always will be. Read More......

Your President's weekly address from Europe.

The President gives us an update from his trip to Europe this morning, recorded it on Air Force One. He can tell us about the meetings and summits and policy accomplishments. But, he can't really convey the way he and Michelle rocked the continent. It's good to be back in the world's good graces.

Here's an excerpt:

As we have worked this week to find common ground and strengthen our alliances, we have not solved all of our problems. And we have not agreed on every point or every issue in every meeting. But we have made real and unprecedented progress – and will continue to do so in the weeks and months ahead.

Because in the end, we recognize that no corner of the globe can wall itself off from the threats of the twenty-first century, or from the needs and concerns of fellow nations. The only way forward is through shared and persistent efforts to combat fear and want wherever they exist. That is the challenge of our time. And if we move forward with courage and resolve, I am confident that we will meet this challenge.

I never felt confident about meeting challenges when Bush was president. Never ever. Read More......

Is Obama for or against pay restrictions for TARP recipients?

Say it ain't so. If this story is accurate, there is a lot of explaining to do. Obama has publicly supported limiting executive compensation for TARP recipients yet according to today's Washington Post, the administration is planning to circumvent Congress and relax these policies or push the money through other organizations in order to avoid restrictions. If anything, this sounds like yet another Larry Summers plan to help Wall Street but hopefully there's a mistake or something was misunderstood. If true, expect all hell to break loose, rightly so.

The Obama administration is engineering its new bailout initiatives in a way that it believes will allow firms benefiting from the programs to avoid restrictions imposed by Congress, including limits on lavish executive pay, according to government officials.

Administration officials have concluded that this approach is vital for persuading firms to participate in programs funded by the $700 billion financial rescue package.

The administration believes it can sidestep the rules because, in many cases, it has decided not to provide federal aid directly to financial companies, the sources said. Instead, the government has set up special entities that act as middlemen, channeling the bailout funds to the firms and, via this two-step process, stripping away the requirement that the restrictions be imposed, according to officials.

If this turns out to be another Summers stunt it should be the end of his reign in Washington. Obama is going to have to start reaching out to economists that are not so closely tied to this economic crisis. This is serious mistake, if true, so we should be hearing some clarification about this story this week. Read More......

Saturday Morning Open Thread

Good morning.

Check out the poem of the week. It's "Not Here" by the 13th century Persian poet, Rumi.

Among this week's haikus, KarenMrsLloydRichards took a couple well-placed whacks at Glenn Beck:

Glenn Beck's martyrdom - - -
Mocking his copious tears,
They know not his pain . . .

And:

Beck's 9/12 Project:
Let's recapture all that hate!
Lash out at Sikh clerks . . .

I love Beck-bashing. He literally cries out for it.

What's up for the weekend? Read More......

Best. Soundtrack. Ever

So many classics but any list has to start with this one. Read More......

Taliban beating of girl stirs outrage in Pakistan

The Taliban continues to do what the Taliban does. In this latest revolting example, a group of men held down a 17 year old girl and beat her due to what they considered a violation of Islamic law. The video (which is inside the linked Guardian article) has triggered a strong reaction among national leaders though in the region where the video was taken, the national government has little control or influence. Somehow I have my doubts that the outrage will translate into action against this band of criminals.

The Pakistani government has ordered an inquiry into the flogging of a 17-year-old woman by Taliban militants in the troubled Swat valley, after public outrage triggered by shocking video footage of the punishment.

The images, played yesterday on private television channels, show a burka-clad woman being pinned to the ground by two men while a third whips her backside 34 times. The woman is seen screaming and begging for mercy as a crowd of largely silent men look on. She is accused of having had an illegal sexual relationship, according to local law. Her brother is among those restraining her.

President Asif Ali Zardari led a wave of public condemnation, and ordered the arrest of the perpetrators. Prime minister Yousaf Raza Gilani termed it "shocking" and called for an immediate inquiry. At the supreme court, the newly reinstated chief justice, Iftikhar Chaudhry, summoned officials to a hearing scheduled for Monday to investigate the incident.

Brace yourself for yet another failed action in Pakistan. Read More......

After all the chest thumping and bravado, the Governor of South Carolina caved on stimulus money

Yesterday, The State (in Columbia, SC) ran an editorial titled, The State of South Carolina vs. Gov. Mark Sanford. The Governor refused to take stimulus money for his state and was getting just pummeled for it. In the end, the State of South Carolina won. Last night, Sanford caved on stimulus spending. Sanford wanted to make a name for himself in GOP national politics by refusing stimulus money. In that quest, he was willing to sacrifice the health, safety and education of his constituents. And, the people of South Carolina forced their Governor to take the money:

Gov. Mark Sanford today will comply with a crucial stimulus deadline and become the last governor in the nation to seek millions of dollars in federal economic-recovery funds for his state, aides said late Thursday.

But Sanford will continue contesting $700 million in education and law enforcement money for South Carolina that he wants to spend on debt. Sanford’s eleventh-hour move to meet today’s midnight deadline buys time for a possible compromise with lawmakers over how to spend the money, as the state’s schools chief warned Thursday of mass teacher layoffs and SLED Chief Reggie Lloyd warned of draconian cuts without the stimulus.

South Carolina will not lose the money after today, as some legislative leaders had thought. But Sanford will control when South Carolina is able to tap the funding.

Obviously, Sanford is still going to play games, but the bottom line is that he made himself the symbol of standing up to Obama. In the end, Obama won and Sanford looks weak. Really weak. He'll be a great leader for the GOP. Read More......