Don't worry about Rahm...Waxman is on it...

Let me start with a little history read in an AlterNet article here.


"Paying Wall Street bonuses was not supposed to be part of the plan. At least that's how Federal Reserve Chairman Ben Bernanke and Treasury Secretary Hank Paulson explained it to Congress and the American people. So, on Oct. 1, when the Senate, including Obama, approved the $700 billion bailout package, the illusion was that this would magically loosen the credit markets, and with taxpayer-funded relief, banks would first start lending to each other again, and then, to citizens and small businesses. And all would be well.

That didn't happen. Which is why it's particularly offensive that the no-strings-attached money is going to line the pockets of Wall Street execs. The country's top investment bank (which since Sept. 21 calls itself a bank holding company), Goldman Sachs, set aside $11.4 billion during the first nine months of this year -- slightly more than the firm's $10 billion U.S. government gift -- to cover bonus payments for its 443 senior partners, who are set to make about $5 million each, and other employees.

Whereas Wall Street may not believe in higher taxes for the richest citizens, it does believe in higher bonuses for the head honchos. No matter what the market conditions are on the outside, steadfast feelings of entitlement tend to prevail."


Below is an excerpt from the communication sent to Citigroup from Henry Waxman, Chariman of the Committee on Oversight and Government Reform. The entire communication can be found in pdf form by clicking the title link.

"Press accounts report that the size of the bonuses could exceed $6 billion at some firms receiving
federal assistance.4
While I understand the need to pay the salaries of employees, I question the
appropriateness of depleting the capital that taxpayers just injected into the banks through the
payment of billions of dollars in bonuses, especially after one of the financial industry's worst
years on record. As one newspaper recently reported, "critics of investment banks have
questioned why firms continue to siphon off billions of dollars of bank earnings into bonus pools
rather than using the funds to shore up the capital position of the crisis-stricken institutions.,,5
To assist the Committee's investigation into this issue, I request that you provide the
following information and documents for your company as well as any affiliates or subsidiaries:
1. For each year from 2006 to 2008, the total compensation and average compensation per
employee, paid or projected to be paid to all personnel, broken down by salaries, bonuses
(cash and equity), and benefits; and a description of the reasons for the year-to-year
changes in these amounts.
2. For each year from 2006 to 2008, the number of employees who were paid, or are
projected to be paid, more than $500,000 in total compensation; the total compensation
paid or projected to be paid to these employees, broken down by salaries, bonuses (cash
and equity), and benefits; and a description of the reasons for the year-to-year changes in
these amounts.
3. For each year from 2006 to 2008, the total compensation paid or projected to be paid to
the ten highest paid employees, broken down by salaries, bonuses (cash and equity), and.
benefits; and a description of the reasons for the year-to-year changes in these amounts.
4. Documents sufficient to show all policies governing the granting of the bonuses to the
groups of employees referenced in items (1) to (3).
Please produce the requested information to the Committee no later than November 10,
2008. To the extent that 2008 year-end bonuses have not been finalized by that time, you should
notify the Committee as soon as those bonuses are determined and supplement your response
with updated information and responsive documents."

I don't know about you but I'm going to keep my "contact your representatives" widget handy...