The Daily Kos has a story out that will really piss The Lion off. Don't know The Lion? She's one of the most opinionated readers I have. And she gets hot when I point to stories like this. Anyhow, it turns out that a former Merrill executive recently plunked down some $37 million for a nice spread on Park Avenue in Manhattan. The executive, Peter Kraus, worked at Merrill Lynch for a whole three months. For his troubles, Merrill paid Kraus a nice $25 million in bonus money. Nice work if you can get it.
From the Daily Kos:You can't make this stuff up.
Merrill Lynch received TARP funds -- taxpayer money. Lots of our money has fallen into the hands of executives who destroyed and looted their companies and are walking away with huge payouts. Peter Kraus is one such executive.
And he should be publically shamed.
Read the rest of the story here (link).
Tuesday, December 30, 2008
Former Merrill Lynch Executive Pays $37 million For NYC Apartment (With Taxpayer Money)
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31 comments:
No.Fucking.Way.
First of all who the HELL pays $37million for a place to sleep at night? Secondly, he worked for a company for 3 months and got $25million when they had to take TARP funds?
I think I feel an eye twitch coming on. I have to call my Merrill Lynch working buddy and bitch to her.
Lion, I am surprised you're taking it so well. Haha.
My guess, by the way, is that he worked on the merger with BOA. Likely got paid for that work. Not sure, though.
Lets be honest here: I wrote that comment before I read the article.
So this fucktard worked for three months, for a company that FAILED and was paid (lets be real) with TARP dollars to the tune of $25million? I am glad to see my fucking tax dollars being spent on things like this instead of improving our education system, defending our borders and allowing 90 year old ladies to afford their prescriptions! Wow what a disaster that would be!
And who the fuck is Paulson to say that banks can't be expected to say what they are doing with the cash because money is "fungible!?" Lets see...where did an extra $25million go this year that didn't go there last year? Don't these companies have accountants!? They can't track this shit, my ass! I wouldn't be surprised if Paulsen was getting something out of all of this. It'll come out one day.
Fuck. Them. All. I'm starting my own country.
As I was saying in the GMAC thread......
There has to be something we taxpayers can do to stop this madness! We have to organize and stop spending in some areas...like boycotting something that we are all in agreement with. I am so tired of these companies thumbing their noses at us and every day someone gets a bailout while the taxpayers are being made fun of every stupid day!
C'mon something or someone has to step to the plate and tell us what our rights are as a citizen of this USA and we need politicians who will go to the bat for us and say enough is enough and PAY BACK EVERY CENT YOU OWE NOW!!!!!
This is so frustrating. CifIcare
Who is the one who worked for Goldman and Sachs? Paulson or Bernake (sp?)
Paulson is a former Goldman exec.
The Lion put it so eloquently...No.Fucking.Way.
WTF is wrong with this picture and the fucking people behind all this shit?! I am so sick of the shit highway this country is heading down! I want out!
I'm packing up my fucking AR-15 and moving to The Lion's country!
My co-workers are used to a bit of profanity emanating from my little corner but even they are looking concerned! I need a Xanax....
We need to organize a fucking stampede on Washington! I can't sit back and take this anymore. There HAS to be something we can do to stop the bullshit that is being forced on us. I'm serious. Mass protest. Someone has to listen...don't they? Aaarrggh!
I am saying! Come join me in my country. We'll take the warm states!
I'm packing my bathing suit now Lion. Fuck this country.
Lion - how do I apply for citizenship in the country you are starting? Any chance it can happen before 2009 ends?
At this rate it would have been far better to hand the working taxpayers their own money back to be used for their own debts, eliminating a whole bunch of foreclosures or medical debts or student loans right away. But nooooo, we like $37 million apartments, that helps the economy!!!
BTW did this guy get a loan for that money, cause that would be interesting... he has no job to pay that back.
Clarissa
Clarissa, absolutely. We could have spent the money a lot better than these banks did.
Would have been so much better if I just got a $25,000 check sent in the mail. I could have done some real stimulating.
My guess is that the exec did get a loan.
And all this time, I was genuinely curious how those non-rich schmucks were able to land themselves in expensive NYC properties that the hard working residents of the city can't even put in a down payment.
I shouldn't have looked farther. They were criminals all along!
"done some real stimulating" hehe that sounds dirrrty LOL
FLT and Samantha, citizenship only requires one thing: a simple test to determine common sense and a love for not blowing money on greedy corporations....and some sort of skill. so three things. Math does not need to be that skill LOL.
We'll take the warm states before winter's out!
The devil is in the details. We can only surmise his compensation contract may have included a signing bonus and an early termination clause. This money is huge by our standards but not uncommon at the highest levels of corporate America. Why did the board of directors believe his talents were so valuable? Isn't wrath rightly to be directed at the Board?
His new abode certainly grabbed the headlines but does it really matter what he spends his money on? The life styles and expenditures of the rich and famous are often so ostentatious as to attract attention of their adoring public.
Since we don't circulate with that rarefied fraction of 1% of the truly rich it's incomprehensible how much money can be lavished.
But the real question of this article is can or should his contract be honored?
Lion, I'm good with automatic weapons and instead of blowing $400 for last New Year's eve gala in my fine hometown in Virginia I spent the night at home cataloging my baseball cards on my computer. Do either of those count as a skill?
Hey if you can handle the weapons without hurting yourself...I'd call it a skill!
Jeff, yes it does matter when his compensation came from taxpayer funds. Only, however, to the extent that his contract should have been void when the company had to take taxpayer dollars.
But naturally that would never be part of a bailout.
Jeff, I imagine that he was in a high-risk position. He likely worked out a nice package in the event that he was let go.
I'm all for the free market. If Merrill thought the guy was worth that much money, so be it. But the public-money angle likely irks people.
Citizenship also requires that you lavish Marcus with gifts. Also, I would like someone to fan me while someone else is peeling grapes and feeding them to me. In other words, I will be the prince of Lion's world.
CM, I agree this irks people. Some here think the contract should be invalidated.
As a lawyer to be, what are your thoughts about tearing up contracts.
Aren't promises to be kept and client interests protected?
As a lawyer to be, let me give you my take.
While the three-month compensation seems crass, I would ABSOLUTELY NOT tear that contract up. He negotiated that deal at arm's length. The board signed off on it. There is no reason to make such a contract void. It's a done deal. Period.
If anyone should be skewered (assuming that someone should), it should be the board. Not the recipient, Peter Kraus.
I'm normally a pro-business type of guy...but this whole thing is just vulgar. It's one thing to get a $25M bonus/salary when you're generating large profits for a company, but this is different. Contract or not, out of good taste Kraus should show some class and had at least some of that money go towards the shareholders who lost out.
I've voluntarily cut my own pay when jobs weren't working out as hoped. It's not that I wouldn't have liked to have had the extra money; I just prefer to be able to sleep soundly at night.
Sean, there is a right thing to do. This is bad timing for Kraus. It looks bad. Would have been nice for him to do something different. It shows a lack of good judgment.
From a contracts standpoint, I stand behind my earlier statement. A deal is a deal -- even if it sucks for the shareholders. And, trust me, I was an investigative reporter who went after companies for a living. This deal irritates me. But the board should be hammered for allowing it. Kraus simply negotiated what the market would bear.
I wouldn't have done what Kraus has done. You wouldn't have done it, either. Kraus will have to live with the consequences. I'm sure he'll sleep just fine at his $37 million apartment over on Park.
Methinks that he could have slept just as well in a more modest place, though.
Here's a link to check out if only for the opinionated readers...
How Peter Kraus Spent His Hard-Earned Bonus Money
My favorite reader comment over there, Crlf:
"People! Calm down! This apartment has no terrace!"
Classic.
No terrace? Why, it's a veritable slum.
And to think I wasted a good dose of Xanax over it. tsk, tsk.
Exactly. We were worried about nothing, Sam. It's a beater.
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