Economics

TARP Banks Get Headhunted

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headhunter

And so it begins. Government in, high performers out:

John Mack and Kenneth Lewis, the chief executive officers of Morgan Stanley and Bank of America Corp., said pay limits tied to federal rescue funds have prompted some top employees to leave the companies.

"I had a hedge fund say to me, 'I can hire anyone I want from you and Goldman,'" Mack said at the bank's annual meeting today…

"We have lost strong revenue generators over the past three months to competitors that are not facing the same compensation restrictions that we are," Lewis said.

Anthony Randazzo, of the Reason Foundation (the nonprofit that publishes this magazine), notes that this is just the begining of the exodus of talent from bailed out companies:

The House has already passed, and the Senate may consider, a bill that would give Treasury Secretary Tim Geithner the power to set salaries of all employees at any bank that has received bailout cash. And not just the CEO's salary, any employee: tellers, janitors, everybody.

No wonder banks are trying to give back the money and run.

NEXT: Stages of Denial

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  1. We need to make it illegal to poach employees from TARP banks.

  2. Good. The sooner the bailed out banks die the better.

  3. America voted for it and now they are going to get it. Don’t worry America, Obama will use lots of lube and he will still respect you in the morning.

  4. We need to make it illegal to poach employees from TARP banks.

    I know Zombo was being sarcastic, but really, is Obama’s goal to make Rand look hyperrealistic?

  5. “Don’t worry America, Obama will use lots of lube and he will still respect you in the morning.”

    Wow! Two lies in one sentence.

  6. I’m shocked, shocked, to find there is gambling going on in here.

  7. I have nightmares about the proletariat going from industry to industry turning the US into a surrealistic version of Soviet industries.

  8. Don’t worry America, Obama will use lots of lube and he will still respect you in the morning.

    Some people enjoy that sort of thing. They have a need for big daddy (or mommy) government to dominate them, use them, and make them like it.

  9. Nationalized car companies

    Nationalized banks

    National credit cards

    !?!?!?!

  10. “I have nightmares about the proletariat going from industry to industry turning the US into a surrealistic version of Soviet industries.”

    Don’t you mean dreams?

  11. Um, why would anyone (honestly) believe there are ‘high performers’ in companies that need bailouts? (And why would anyone believe that ‘high performers’ would want to stay on board a sinking ship, regardless of compensation?)
    Why would anyone want the people who assisted, if not caused, the collapse?

    Methinks I smell weasels…

    no hugs for thugs,
    Shirley Knott

  12. We have lost strong revenue generators over the past three months to competitors that are not facing the same compensation restrictions that we are.

    Easily solved. Either

    (a) Apply the TARP compensation restrictions to the employee, so no one can pay him more than he could get at a TARP bank, or

    (b) Apply the TARP compensation restrictions to the entire financial services industry.

    Given the increasing migration of financial services overseas, you’d probably need to pull the passports of anyone who works in a TARP bank as well.

    For The Children!

  13. “Nationalized car companies

    Nationalized banks

    National credit cards

    !?!?!?!”

    National Disaster.

  14. That, zombo, or just bring back wage controls that prohibit any private employers from paying more than the prevailing wage of government employees in a similar grade. Then Senator Blowhard and Cong. Mooch can win votes by selectively raising the wages in different pay grades.

  15. Um, why would anyone (honestly) believe there are ‘high performers’ in companies that need bailouts?

    Because these are enormous companies with all kinds of insanely profitable lines, that were sunk by the activities of a single division, that’s why.

  16. Don’t you mean dreams?

    I apologize for failing to stay in character for more than a single post.

  17. Why would anyone want the people who assisted, if not caused, the collapse?

    You’ve just described the government regulators who are now in charge. Unfortunately, no one’s cutting their salaries and benefits.

  18. Zombo,
    “Nationalized car companies

    Nationalized banks

    National credit cards”

    Step 2: ??

    Step 3: PROFIT!!

  19. “Because these are enormous companies with all kinds of insanely profitable lines, that were sunk by the activities of a single division, that’s why.”

    There is a story on the front page of today’s Wall Street Journal that is a perfect illustration of this.

    Citigroup is in danger of losing top performers in it’s energy trading unit. That unit has been very profitable for Citigroup and it has noting to do with subprime loans, credit default swaps, etc.

    Losing those people will put a big crimp in the isntitution’s ability to get out of the hole it’s in.

  20. “Um, why would anyone (honestly) believe there are ‘high performers’ in companies that need bailouts?”

    There were profitable divisions of some of these companies, like AIG. The people who didn’t fuck up are finding themselves punished along with the people who did, and are moving on accordingly.

  21. Should have said “like AIG’s insurance division”.

  22. “Good. The sooner the bailed out banks die the better.”

    Except that they still won’t be allowed to die. The continuing failure wrought by government action will be used as excuse for further government action. They Dems will try to fully nationalize the entire banking industry.

    And then the very first line on every loan application form will be “Who did you vote for in the last presidential election?”

    The second line will be “Who are you planning to vote for in the next one?”

  23. You have been issued your platinum Obama card, and it will arrive in the mail shortly.

    This card can be used to:

    Buy medical services at your government sponsored health clinic

    Buy a car at your government sponsored car dealership

    Buy fresh fruits and vegatbles at your government sponsored famer’s market where all the fruits and vegies were grown locally using certified green practices

    Note that you have also been automatically enrolled in our direct deposit program. 100% of your paycheck will be deposited in your government provided checking account.

    Expenses for roads, brigdes, schools, welfare programs, retirement programs, national defense, disaster relief, green energy production, and so forth will be deducted directly from your account. The resulting negative balance will be appended to your platinum Obama card.

    Also note that we already have the social security numbers for your children, grandchildren, and unborn great-grandchildren. Your platinum Obama card balance will be divided equally amongst your descendents upon your demise.

    Have a nice day. Thanks for calling your federal government technical support hotline.

  24. “We need to make it illegal to poach employees from TARP banks.”

    What we need right now is to stand still. We can’t count on things getting better in the near future, so we have to make sure they don’t get worse. Therefore, we should create a unified labor board to make sure employers don’t fire employees and employees don’t quit their jobs. We should also unify all steel production and railroads. And we should capture John Galt and make him tell us how to get the economy out of this hole, because Obama sure as hell doesn’t know how.

  25. If this is the same “talent” that got the banks into this mess-good riddance!

  26. Can we use the Ferris Extractor? Pretty please with sugar on top?

  27. I don’t serve any purpose in this story except to personify the peak of suckitude.

  28. If this is the same “talent” that got the banks into this mess-good riddance!

    Welcome back,classidiot. Haven’t heard from you in a while.

  29. Good riddance. All these companies that took government money should go out of business.

    You sleep with the government, you deserve a venereal disease.

    This should be a lesson to all individuals and businesses: always tell the government to go fuck itself.

  30. Some people enjoy that sort of thing. They have a need for big daddy (or mommy) government to dominate them, use them, and make them like it.

    I call it all-government, all-the-time, in every orifice.

  31. Is it just me, or is that picture the most blatantly racist image of Obama you’ve ever seen? I’m shocked that Reason would stoop so low.

  32. “I call it all-government, all-the-time, in every orifice.”

    I hear Rachel Maddow likes it like that.

  33. “I call it all-government, all-the-time, in every orifice.”

    Triple Love.

  34. America voted for it and now they are going to get it.

    You are fucking clueless. This shit started with Bush and would have continued with McCain so America didn’t have a choice during the election regarding TARP.

    But, what should one expect from a partisan hack like you.

  35. in every orifice

    I always referred to that as making her air-tight.

    I can’t wait to hear the imbecilic spin put on this one. Anyone who has ever worked in a mid-size to large service company where talent seperates you from the competitor could easily see this coming. Although anyone with a basic understanding of human resources could have too.

  36. Is it just me, or is that picture the most blatantly racist image of Obama you’ve ever seen? I’m shocked that Reason would stoop so low.

    It appears to be a pic from Disneyland’s Jungle Cruise ride. Whether or not it’s racist worries me less than that it appears to be hotlinked from someone’s blog.

  37. I hear Rachel Maddow likes it like that.

    I confess that since I do not watch MSNBC, I have no idea what Maddow sounds like, but from the looks of her:

    (A jar of lube + a strap on + Maddow + Me) may equal a really fun time.

    Why are you looking at me like that?

  38. I’ve always wondered why so many people reacted to Rand’s Atlas Shrugged scenario — actually it was dead on, except the utopian ending. People are simply not going to sit still for the type of micro-management the Obama administration is implementing — not until all the choices are gone and there’s no place in America to make it. Then, when there are no more choices left, people will look elsewhere, other countries — not a hidden valley in Colorado, but some countries might recognize an opportunity and welcome the brains with open arms.

  39. America voted for it and now they are going to get it.

    You are fucking clueless. This shit started with Bush and would have continued with McCain so America didn’t have a choice during the election regarding TARP.

    You mean Bob Barr and Chuck Baldwin weren’t on the ballot?

  40. I thought I would check in to see if things have changed around here. You know, maybe there would be some new insight, or some new characters with a fresh perspective. Sure enough, they haven’t.

    All we see is the same old failed prophecies reshaped to fit current events. The echo chamber rattles on, with even more pitiful reflections on how Ayn Rand, the true Messiah, got it all right.

    However, all I keep thinking is “wasted lives.” Some of you need to be shown a good time, and I’m not just talking about dry humping an economics text book while gorging on a bottle of xanax.

    Apparently the term “strategy” doesn’t seem to be a worthy focus for Libertarians. The house-wife style bitchiness will surely create the desired revolution. At least many of you, and Ayn Rand had something in common: Egotistical self-delusion.

    That’s worth something, right?

  41. “We have lost strong revenue generators over the past three months to competitors that are not facing the same compensation restrictions that we are,” Lewis said.

    No problem. The feds can see to those competitors.

  42. Hey here’s a radical concept… if you’re an executive whose practices resulted in the company having to beg the government for bailout money, then is it possible that maybe YOU’RE NOT TOP TALENT after all???

    Why are we having to operate on this asinine assumption that corporate executives did absolutely nothing wrong and that all of this just MAGICALLY manifested itself? It’s their greed and incompetence that created this mess in the first place. It’s high time they owned up to their FAILURES and be held accountable for them!

    Oh, speaking of which, it seems the BoA CEO already got a taste of that today.

  43. The Libertarian Personality Disorder, if you really think that we are as pathetic as you describe don’t you think it makes you a piece of shit bully and a sadist to be picking on us the way you do in your post?

    Where is your humanity, man? What kind of monster are you?

    Think about it.

  44. “””””””We have lost strong revenue generators over the past three months to competitors that are not facing the same compensation restrictions that we are,” Lewis said. “”””””””‘

    Since these TARP banks should have gone out of business months ago then its good news that its non-screwed up competitors are getting the good employees.

    Of course many of the last few years “strong revenue generators” were also the ones who were “strong debt creators” who ran the banks into the ground when their bets did not work out.

    As to the good ones, well guess what, they voluntarily joined a corporation, that is a collective and so their profits depend on what that collective does. If they wanted to individual rewards for their performance they should not join a collective organization.

  45. “Um, why would anyone (honestly) believe there are ‘high performers’ in companies that need bailouts?”

    “Because these are enormous companies with all kinds of insanely profitable lines, that were sunk by the activities of a single division, that’s why.”

    Yeah and so what they have profitable lines they are still tied to the parent corp. I work for big pharma and we not only turned a profit we didn’t get any bailout money and yet my raise was cut 70% and bonus cut in 1/2 this year. So splain to me why I should think anyone in these hands out gimme tax money corps should be getting a thin dime of my money in a BONUS? If they are so good let them go but something tells me they are lucky to even have a job with a base salary right now or did that tax money not enable them to keep their doors open? Either you were broke and needed the money to survive or you weren’t which is it? Best and brightest my ass, biggest egos and bonuses is more accurate. Let them go find work elsewhere if the market dictates the are worth more elsewhere. I would be hard pressed to hire someone thats resume` ends with their leaving AIG after they may or may not have run it into the ground.

  46. The sooner the bailed out banks die the better.

    If only. Instead they become permanent fixtures of the government.

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