We now see why Chicago-based Northern Trust quickly returned that $1.6 billion in federal TARP money: Its president and CEO earned $6.1 million, most of it in stock and option awards, last year. If they can give out bonuses that big, they don't need no stinking TARP funds.
If Frederick Waddell is the norm and not the exception in this industry --- at the root of the economic meltdown --- no wonder the Average Joes and Janes don't trust the banking bailouts. However, his compensation last year was down from the $14.4 million he earned in 2007. All this can be found in the firm's regulatory filing it deposited last week with the Securities and Exchange Commission.
Perhaps, though, Waddell earned his keep. Northern Trust, after all, has been profitable, even after sponsoring lavish parties and concerts during the Northern Trust Open at a posh Los Angeles area country club last month.
Yet, it seems systemic of the banking industry and if cable networks are looking for a new reality series, The Hound has a suggestion: "Bashing the Banker".
The show would pit different bankers versus each other to find which one could waste more on inane lifestyles and investments than the next. Sort of like "The Real Housewives of Orange County" and its various spinoffs from Atlanta to New York. Then a panel of judges, like in "Top Chef", gets to grade each of the bankers on how profligate they are. The winner gets a bonus; the loser gets flogged.
This idea has legs, The Hound believes. Everybody else is bashing them so it's time for reality to set in.
I believe the bankers will need to tag-team with the government regulators whose duty it was to oversee the banks and steer them away from doing stupid things to endanger their banks' financial health. Sec of the Treasury Geithner was at the New York Federal Reserve Bank and was responsible for watching over CitiCorp and the others. Oh yeah, also bring in the politicians like Barney Frank who kept on saying that Fannie Mae and Freddie Mac were doing just fine, and there was no problem with them. BTW... This morning Citi said it had a profitable last quarter...What the (bleep)? If they were making money, why give them taxpayer dollars?
THE HOUND SAYS: Why give them money? Because they're banks! Who else would you give money to? Hot dog stands?