Wachovia went belly up this week – bought out by Citigroup at fire sale prices with the FDIC on the hook for hundreds of billions in losses. Fed Chairman Bernanke, supported by Treasury Secretary Paulson, insisted the Wachovia "did not fail" – however, that is putting lipstick on the proverbial pig.
So they managed to roll the 1978 Ford LTD into the used car lot and trade it in for $1 per share. What is really galling is that three top Wachovia executives are in line to receive about $20 million each for their fine performance. Ah, disaster capitalism at its best.
Details below -
Three of Wachovia’s top executives have change-in-control agreements with the company that could pay them millions if they are terminated or choose to resign following Citi’s (NYSE:C) acquisition of the company’s banking operations.
Ben Jenkins, head of Wachovia’s general bank, would receive $13.3 million in severance payments and a pro-rated bonus of $3.7 million, according to a securities filing in March.
Steve Cummings, head of the company’s corporate and investment bank, could nab a $14.3 million severance payment and a bonus of $4.25 million.
And David Carroll, head of Wachovia’s capital-management group, would get a $14 million severance payment and a bonus of $4 million.
http://www.bizjournals.com/...
These three mofos are getting about $20 million each for running a banking corporation into the ground, collapsing the value of Wachovia’s common stock from $50 to $3, ruining not only Wachovia employees’ retirement portfolios, but also all the 401Ks holding Wachovia stock, and contributing to the near-collapse of the American financial system.
And they are getting a $20 million bonus each ?!?!?
Something is truly fucked up.
Of course they had the buy-out clauses written in to their hiring agreements.
Fine! Then investigate the shit out of them. Offer rewards for information of any and all illegal and/or unethical actions. Remember, their underlings are looking at pink slips. Prosecute the crap out of them. And if they are found guilty, make sure the fines are hefty.
Say about $20 million.