TARP, as originally conceived, could have been useful. If an institution is too big, it is too big. The huge problem with TARP was that it was shoved down ALL the bank's balance sheets, then the political whiplash created all manner of braided "strings" that became attached to those funds. The conditions, disclosed after the money was forced on the banks were too toxic to do business under, so even the banks that truly needed the funding to remain solvent sent the money back as fast as they were allowed. Totally destroying the purpose of the relief in the first place.
Much as I dislike the magnitude of the finance industry compensation, the structure of the money (very low salary, so you can eat Ramen and Peanut butter) with the majority of your salary delivered when profits are calculated. That is in the employment contract, including what the person needs to do to earn that part of their negotiated salary. Bonus is a stupid term, stemming from the tax implications of paying the money out, so the government tax laws force the banks to use the word bonus. It is NOT a bonus, it is part of their contracted compensation package that is conditional on their performance. You share the risk of being able to do well, so your rewards are going to be greater, if you pull it off.
no subject
Much as I dislike the magnitude of the finance industry compensation, the structure of the money (very low salary, so you can eat Ramen and Peanut butter) with the majority of your salary delivered when profits are calculated. That is in the employment contract, including what the person needs to do to earn that part of their negotiated salary. Bonus is a stupid term, stemming from the tax implications of paying the money out, so the government tax laws force the banks to use the word bonus. It is NOT a bonus, it is part of their contracted compensation package that is conditional on their performance. You share the risk of being able to do well, so your rewards are going to be greater, if you pull it off.