For those Kossacks who think limiting executive pay is a bad idea and trusting banks is unquestionable...
Naked Life Insurance aka "Janitor's Insurance" or "Dead Peasant Policy"
Banks are using a little-known tactic to help pay bonuses, deferred pay and pensions they owe executives: They're holding life-insurance policies on hundreds of thousands of their workers, with themselves as the beneficiaries.
I thought Naked Short Selling and Naked Credit Default Swaps were destructive. Imagine putting your life even further in the banksters hands.
I used to think their betting someone's house would foreclose after they rigged it to do exactly that was about the most egregious thing banksters could do. I was wrong.
"Bank of America Corp. has the most life insurance on employees: $17.3 billion at the end of the first quarter, according to bank filings. Wachovia Corp. has $12 billion, J.P. Morgan Chase & Co. has $11.1 billion and Wells Fargo & Co. has $5.7 billion....
To everyone who defends the bankstas on this site, hmmm.
Over the coming decades, banks will receive an estimated $400 billion in death benefits...as "mortality dividends"... Employers track the deaths of former employees by checking Social Security Administration records.
How quaint. By all means, trust them, Mr. President. Trust them American People. Move forward without looking back. Sage advice indeed.
Thousands of companies do it, including American International Group Inc., Fannie Mae, Freddie Mac, Kimberly-Clark Corp. and Tyson Foods, Inc...
No, EFCA is a bad idea. CEO's and Corporations just want a fair shake. You can trust these people with your life. Oh, and add Wal-Mart to the list above.
Around Christmas, Irma Johnson received a stunning surprise in her mail: a check for nearly $1.6 million.
It was from a policy on her late husbands' life. Only the check wasn't made out to her. It was made out to the employer(bank) who fired him four months after they took the policy out on him, which was after he had gone through two surgeries for brain cancer and been diagnosed as terminal.
The policies, which often are taken out on the lives of rank and file employees, are known in the industry as "dead peasant" life insurance, ...Bank-owned life insurance policies are very profitable, said Myers
Especially, if you pick brain cancer patients. Is this like default swaps? Can I buy some on Arlen Specter? Not that I would. It's just inhumane.
In addition, the investment returns and death benefits aren’t subject to federal income tax...said Myers, ...In 2004, Wal-Mart agreed to pay $10.4 million to the families of 380 deceased employees.
Tax Free when you cash 'em in?!? Tax free returns?!? It makes one think about opening up a driving school and hiring 20 blind diabetic octogenarians who eat krispy kreme and bacon three times a day. Not!
For the biggest banks, Myers has tallied up the cash surrender value — the amount each policy is worth at a certain moment in time — and he says it’s trillions of dollars.
Trillions of dollars. Nah, big business would never try to cash in on insurance policies based on other people's misery. Oh, oops, I forgot about default swaps.
Irma Johnson also is still seeking the $150,000 death benefit that Myers said hasn’t been paid yet.
Just to summarize. This bank had an employee on death's door. Diagnosed with terminal brain cancer. He coudn't walk or talk.
He's so diminished in his capacities, they demoted him, then induced him into allowing them to take out a policy on his death by offering a $150,000 policy for his family.
They fire the guy four months later, and keep their share after he passes and leave his family out in the cold.
If that envelope containing the check hadn't been mangled it would have been delivered to his former employer instead of his widow. Fate has a funny way...
And wtf is up with an insurance company who writes this kind of policy. Who was it? AIG?