Wednesday, February 11, 2015

A Noble Undertaking

Cash in, cash out, cash money's on the cut.

Citigroup is one of three Wall Street banks attempting to keep hidden their practice of paying executives multimillion-dollar awards for entering government service...(c)ritics argue these “golden parachutes” ensure more financial insiders in policy positions and favorable treatment toward Wall Street...

The handouts recently received attention when Antonio Weiss, the former investment banker at Lazard now serving as counselor to Treasury Secretary Jack Lew, acknowledged in financial disclosures that he would be paid $21 million in unvested income and deferred compensation upon exiting the company for a job in government. Weiss withdrew from consideration to become the undersecretary for domestic finance under pressure from financial reformers, but the counselor position—which does not require congressional confirmation—probably still entitles him to the $21 million. The terms of the award are part of a Lazard employee agreement that nobody has seen.

These payments are routine at major banks, several of which have explicit policies, found in filings with the SEC, outlining automatic awards for executives who rotate into government. Goldman Sachs offers “a lump sum cash payment” for government service, for example. 


1 comment:

  1. My brother and I joke that successful assassins are characterized by being known by their full name. And sometimes, when I read shit like this, I think "maybe it's time to earn my middle name".