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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?


To: ahhaha who wrote (13258)2/4/2009 5:07:12 AM
From: ElsewhereRespond to of 24758
 
Widening the gap between the weak and the strong.

A shutdown of a number of weak banks would be beneficial. Just as in Germany. But instead the Merkel government is preparing a law for nationalizing bad banks (Bloomberg). So far it applies to Hypo Real Estate which has turned out to be a bottomless pit. A conservative government considers expropriation of shareholders for the "common good" and the supposedly supply-side "think tank" Ifo Institute and its leader Hans-Werner Sinn urge them to do it! Ludwig Erhard turns over in his grave.



To: ahhaha who wrote (13258)2/4/2009 2:42:31 PM
From: NickSERead Replies (1) | Respond to of 24758
 
Limiting comp is dumb on so many levels. For the banks that do take the money, you're expecting the execs to help turn the bank around and make them profitable again so the govt. can get a return on their investment. What motivation will these guys have now to do anything? Zilch.

Don't you think the execs at reduced salary would quit and join the "healthy banks"?



To: ahhaha who wrote (13258)2/4/2009 2:59:45 PM
From: SGJRespond to of 24758
 
Don't you think the execs at reduced salary would quit and join the "healthy banks"?

Also precludes hiring a crack turn around team. No incentive for anyone to try it. They are not going to want stock options. Are performance based cash bonuses also excluded? That addition may make a more attractive package.