Obama and the Times Get Half the Story Right

The New York Times reports breathlessly on Obama's "anger" at the $18 Billion in bonuses paid by Wall Street banks in 2008.  What is missing from the story, however, is the context of the report by the Office of the New York State Comptroller, Cash bonuses paid by Wall Street firms to their New York City employees declined by 44 percent in 2008 in response to record losses suffered by the securities industry, according to an estimate released today by State Comptroller Thomas P. DiNapoli. DiNapoli noted that the federal Troubled Asset Relief Program (TARP), which infused billions of dollars into the financial system, helped prevent more institutions from failing. TARP placed restrictions on bonuses for top executives and many have voluntarily forgone bonuses, but it did not impose limitations for lower-level employees."A 44 percent decline in the bonus pool will ripple through the regional economy and the state and the city will lose major tax revenues,"...(Read Full Post)