Tuesday, April 28, 2009

Let's Regulate Corporate Banking Welfare

CC'ing the world on my dealings with my congressman (who has responded to me dutifully in the past), John A. Boccieri:
Congressman Boccieri,

Given the recent bail-out of financial institutions using government-backed funds, I have to raise a couple of issues and ask for your consideration of the implications as opportunities arise to address the issues at hand.

1) Bankers are supposed to manage risk.

2) Some of these people have clearly missed the mark, managing this risk. At the same time, the executive management of these same institutions were compensating themselves at a rate that most of us (the vast majority of your constituency) would consider obscene.

3) Having our tax dollars shoring up this risk is a dangerous proposition for our government.

4) They're continuing to pay themselves as if they were creating wealth -- recent measurements show that they're attempting to return their pay to pre-2008 levels.

http://www.nytimes.com/2009/04/27/opinion/27krugman.html?_r=1 (Article reference is Paul Krugman's article in the New York Times entitled "Money for Nothing").

I ask you as my representative in the House to please do your part to regulate this new form of welfare. If we're going to turn the banking system into a new welfare state then there should be welfare-like compensation for the executive management. If they don't want this kind of regulation then they should find ways to be profitable and not take the money as a loan from United States taxpayers (such as you and I).

That's my request -- feel free to call anytime.

PS: Posting this on my blog as well -- just keeping you informed. I trust you as my representative and believe that true democracy requires transparency.

--Paul Ferris.
Writing your representatives is a really good idea. I'm sharing here in the hopes that everyone reading will feel similar motivation to get involved with their government and the overall solution. Vote, contribute and protest if need be. But above all things, be informed and involved.

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