Quote:
Originally Posted by ADL Colin
They have. To the tune of $232 Billion in subprime losses SO FAR.
The CEO's of CityBank, Merrill Lynch, H&R Block and Germany's Landesbank Sachsen have resigned. The co-President of Morgan Stanley resigned. I'm sure there are more. Banks, investment firms and mortgage companies are taking severe losses.
The banks, their officers and their shareholders are getting their asses handed to them.
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In a way. They are also getting bailed out by the government. Historic drops in interest rates so they can "fix their problems" and the $30 billion dollar taxpayer funded bailout of Bear Stearns doesn't help either. Lets not forget that we are now loaning money to investment firms, something the Fed has never done before.
Most of those company's you listed had CEO's take HUGE buyouts and left with tens of millions of dollars. Heck, Countrywide's CEO (the one that ran them into the ground) got like a $60 million dollar buyout.
So the banks might hurt temporarily, but long term the government will step in and fix their problems. They have no risk unlike the people taking out mortgages.
Both sides should be responsible (banks and borrowers), but we don't punish banks, so they'll never stop.