BANKS' MEA CULPA? DON'T BET ON IT!

Written by JMG Tuesday, 24 February 2009 23:52

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Wells Fargo Bank's full page piece in The Washington Post, "The Value of Team Member Recognition," leaves all of us misty-eyed.  Its lamentations over postponement of bank bonuses are truly heart rending.  One should keep a box of Kleenex handy while reading it. 

No mention of dollar amounts of past or proposed bonuses is made, however, even though there was a full page ad to do so.  That's a lot of newsprint, even using oversize type.  It's also costs an oversize price -- the last time we looked, a full page ad in the Post cost $36,000 -- but probably one Wells Fargo can well afford.  We think the Post should donate that fee to help home foreclosure victims, or better yet, set up a fund for that purpose.  Many tenants, after all, have been hurt in the crossfire of foreclosures, renting housing unaware of owner liability and subsequently getting kicked out by the banks. Wells Fargo's solution to the Bush Depression?  Bonuses for bankers, of course!

            Wells Fargo poignantly describes hardships caused by postponed bonuses, but the postponement lasts only until the end of 2009, less than a year.  What happens then?  Reinstatement of bonuses? Bonuses indexed for inflation? Bonuses reverse-indexed for deflation?  The full page ad ends with a cry of sadness: "We just hope the hardworking people of America understand, appreciate and support employers who try to do the right thing for their team members, customers, communities, and shareholders."

            Our hope is a little different.  We hope this country's hard-working people will remember the "platinum fleecing" of America by the banking industry, continue to wonder why virtually none of these pirates are behind bars, and demand that the Justice Department belatedly be ordered to investigate this outrageous situation.