The Government Bailout: Adding Insult to Injury

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Evan Vucci, AP

Greed

Note to Big Three automaker executives: When you are coming to congress to ask for billions in taxpayer bailout money it would be wise not to fly in on your private jets. This is just the latest example of corporate head honchos lavishly spending money and then begging for a handout.

Click through our gallery as we note many more cases where the way the government bailouts are playing out seem to be adding insult to injury.

Next: Big Wall Street Bonuses

Wall Streeters Can Still Expect Big Bonuses

When the government agreed to bail out Wall Street, the goal was to provide funds to shore up banks' capital bases so they would start lending again. It wasn't to help them fund the bonus pool. But estimates run that as much as $70 billion will get paid out in bonuses to Wall Streeters this year. That amount equals 10% of the $700 billion bailout.

More on Wall Street bonuses

Next: A Goldman Hotshot Doles Out the Money

A Goldman Hotshot Doles Out the Money

Neel Kashkari, a 35-year-old former Goldman Sachs whiz kid who believes in free markets, is getting the job at the Treasury Department of dispersing the government's $700 billion rescue. Is he really the right person for the job? Lots of observers have wondered if a seasoned vet with a little more political experience might be a better fit for the task at hand.

More on Kashkari

Next: How Is AIG Spending Its $123 Billion?

How Is AIG Spending Its $85Billion?

AIG sent salespeople on a lavish luxury retreat at the same time it was getting billions in government aid. The retreat at the St. Regis resort in Monarch Beach, Calif., cost AIG $440,000 and came right after it received a $85 billion line of credit. Even worse, it planned another lavish retreat soon after. But when the press caught wind of that one, it was soon cancelled.

More on AIG's big spend
Next: For Lehman Ex-Bankers, Isn't Getting to Keep Their Jobs Bonus Enough?

Isn't Getting to Keep Their Jobs Bonus Enough?

Some of Lehman's top executives got signing bonuses to stay at the banks that acquired their divisions in bankruptcy proceedings. The Financial Times reported that Nomura, which bought Lehman's European and Asian divisions, gave bankers cash equal to last year's bonus if they agreed to stay at Nomura for a year, for example. Given massive firings on Wall Street, were those payouts really necessary?
More on signing bonuses
Next: Most CEOs of Failed Financial Firms Still Get to Keep Their Millions

Most Failed CEOs Still Get to Keep Their Millions

2008 has been a year of watching CEOs at failing financial firms get fired -- but with a few million to soften the blow. The compensation they enjoyed was at least theoretically tied to profits earned while they were running the show, but the profits have vanished by now. Most will get to keep their money, although AIG's former CEO may not.

More on the Witherspoon Cap

Next: They Want Our Pity?

They Want Our Pity?

Lehman Brothers' ex-CEO Richard Fuld seemed to want pity when testifying before Congress and spoke about how he lies awake at night wondering what he could have done differently. Former Federal Reserve Chairman Alan Greenspan wasn't much better when he told Congress, "I made a mistake," when he reasoned that Wall Street could police itself.
But where is the help for struggling homeowners?
Next: Aren't Banks Supposed to Use the Bailout Money to Keep the Economy Humming?

Shouldn't Banks Use the Money to Help the Economy?

Nope. It turns out that banks can use the money however they want. Banks that are getting government bailout money are contemplating using it for other things -- like buying other banks -- not adding it to the lending pool so they can make more loans and end the credit squeeze. Next up, insurance and car companies may get to tap into the funds.

More on bank consolidation

Next: Lawyers Are Big Winners in All This?

Lawyers Are Big Winners in All This?

Wall Street law firms are getting a bonanza of billable hours from the government bailout. Not only are they representing firms in contract negotiations that come as part of the bank bailout, but they are also helping firms that are now in trouble with regulators. There are few sectors that are making hay from this crisis, but law firms that represent investment banks are one of them.
More on law firms winning big
Read the Full Blog Post by Amey Stone
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