By Static Chaos
According to a Wall Street Journal analysis of Treasury Department data, the biggest recipients of taxpayer aid made or refinanced 23% less in new loans in February, the latest available data, than in October, the month the Treasury kicked off the Troubled Asset Relief Program (TARP). (Chart 1)
Meanwhile, the average Wall Street bonus soared almost 14 times higher (by 2006); the average worker's salary has essentially been stagnant sine the mid-1980s. (Chart 2)
Wall Street bonuses paid to New York City securities industry employees rose by 17% to $20.3 billion in 2009, according to an estimate released in February by State Comptroller Thomas P. DiNapoli. (Click here for a chart showing bonuses paid from 1985-2009.)
Total compensation at the largest securities firms grew even faster and industry profits could exceed an unprecedented $55 billion in 2009, nearly three times greater than the previous all-time record. In 2008, the industry lost a record $42.6 billion.
A 17% bonus increase in a recession year with a nationwide jobless rate of around 10%, coupled with a reduction in lending while receving TARP money - a sure fire recipe for becoming public enemy number 1.
So, no surprise here -- a video from WSJ.com dated Apr. 30 showing thousands of demonstrators rallied against big banks in New York's financial district, calling for accountability and job creation. Wonder if Goldman Sachs employees are still packing guns?