Underneath the surface of smaller sized Wall Street bonuses

Wall Street bonuses shrank an average of 8 % year-over-year in 2010. Even though Wall Street profits soared, bonuses were deliberately held down. Increasing earnings offset decreasing bonuses to account for an overall increase in payment on Wall Street. Resource for this article – Wall Street bonuses fall as executive salaries rise by MoneyBlogNewz.

Wouldn't it be nice to get a Wall Street bonus?

NY State Comptroller Thomas DiNapoli explained that an average of $128,530 was paid in 2010 for Wall Street bonuses in the financial services industry. That figure represents an 8 percent drop from the $140,730 average for Wall Street bonuses the year before. There was a 33 percent drop in the total Wall Street bonuses from 2006, before the financial meltdown, to 2010. They went from $34.3 billion in 2006 to $20.8 billion last year. In 2010, Wall Street profits were at $27.6 billion which is second to 2009 only when profits were at $55 billion due to government bailouts and record low rates of interest.

Wall Street bonus deception

The decrease in Wall Street bonuses for 2010 isn’t a signal of executive compensation in decrease. Handing out scaled-down bonuses was because of what the public wants. The public was angry that there were huge bonuses passed out during the financial crisis to executives. DiNapoli explained that Wall Street financial service compensation went up last year. It went up by 6 % total. Financial reform regulation, along with the controversial nature of obscene bonuses, has motivated big banks to change the way they pay employees. Base earnings are larger than bonuses now.

A new way taxes are prevented

Some of the compensation is being deferred by Wall Street firms. This will make financial regulators think that short-term gain is exchanged for long-term profitability. By doling out scaled-down bonuses, Wall Street firms have also discovered a new and effective tax avoidance tactic. About 20 percent of the tax revenue in New York before the financial crisis came from tax revenue from the financial sector, DiNapoli reports. Now it’s only 13 %. NY City’s tax revenue from Wall Street dropped from 13 % before the crisis to 7 percent in 2010.

Information from

CNN Money

money.cnn.com/2011/02/24/news/economy/wall_street_bonus/index.htm

Wall Street Journal

blogs.wsj.com/metropolis/2011/02/24/wall-street-bonuses-dropped-in-2010/?mod=google_news_blog

NPR

npr.org/2011/02/24/134017725/wall-street-bonuses-fell-from-2009-level

Mortgage refinancing programs targeted by Republicans

Mortgage refinancing programs offered by the government are considered by many to be a failure. Congressional Republicans have made clear their intention to cut any remaining mortgage modification plans, as few have a success rate worth boasting of. The recent quagmire and scandal involving foreclosure processes has slowed the number of foreclosures nationwide. Article resource – Mortgage modification programs under fire from Republicans by MoneyBlogNewz.

Failed mortgage relief programs prime target for spending cuts

Congressional Republicans are taking aim at failing programs that throw money down the drain, and mortgage refinancing plans are prime targets, according to CNN. House of Representative members have suggested that $38 billion could be saved in the spending budget if federal programs that are there to help those with failing mortgages would just be taken away. A huge focus on is the Home Affordable Modification Program. This is because it was called a failure by Neil Barofsky who’s the Inspector General for the TARP.

Finding more to cut

You will find several other mortgage helping programs that could possibly be cut. These consist of the Emergency Homeowner Relief Fund, the Neighborhood Stabilization Program and all other plans under the FHA. However, these plans have not been smashing successes, either. Mississippi Representative and chair of the House Financial Services Committee Spencer Bacchus said that ending plans that do not work only makes sense as "it's time to pull the plug" to them. There has been a success rate of less than 50 percent with these programs since only about 500,000 permanent mortgage modifications have been made. Processing foreclosures has taken forever. The time is getting longer.

Lengthier foreclosure process

There are more procedural rules that have been put on foreclosure processes. This means that it is taking lengthier for lenders to foreclose on homes, USA Today reports. A distressed homeowner will spend about 19 to 20 months living in a foreclosed home at current rates, which might increase to 22 to 23 months. Before the mortgage crisis, the normal time a person would have gone in a foreclosed home was 250 days which changed from Jan 2010 to Dec. 2010 alone from 410 days to 507 days. Increased scrutiny due to the “robo-signing” controversy has led to foreclosures taking far lengthier, which causes loan companies to lose considerable amounts of money.

Information from

CNN

money.cnn.com/2011/02/25/news/economy/gop_Obama_housing_help/index.htm

USA Today

usatoday.com/money/economy/housing/2011-02-21-unpaidmortgages21_ST_N.htm

SBA loans could not get too several who need them

A New lending program through the Small business administration opens on Friday. The rules were just released, and applications are now being accepted. The program was intended, by Congress, to help businesses who have buildings facing foreclosure. There are very heavy restrictions on the program that could prevent companies that actually need the help from getting it. Post resource – New SBA lending program to start Feb. 28 with heavy restrictions by MoneyBlogNewz.

Rules announced for New Small Business Administration lending

This year, in Jan, businesses have been waiting for lending program rules. This can only come from the Small business administration. The program was passed by Congress last year, and the SBA has been working on implementing the rules since then. On Thursday, Feb. 24, the rules were officially announced. Underwater mortgages can be covered by the loans that businesses with mortgages can get. These could be due in the next 24 months. About 10 percent of the loan amount is going to be something the business has to have in cash or equity to be able to put down.

Small Business Administration program limitations

Help from the SBA lending program is intended to give companies a helping hand. Really, this ought to stop foreclosures in the business. Several businesses can be cut out of the deal with the rules that have been set. The majority is concerned that these limitations are too much. Any companies that don't have the down payment cash accessible, that can't pay the additional 1 percent fee or that already have short-term SBA mortgage loans are not allowed to get the loans. The Small Business Administration claims that these restrictions are to ensure that companies that are truly on the edge of shutting down, however viable, get the most help first.

Starting a small business loan

Since payday loans are too small for businesses to get any help from generally, it can be hard to get a small company to stay open. Whether or not the economy is doing well, businesses might just fail. The chance of success in a business is the first thing to determine. About $15 billion is being loaned to smaller businesses from the government. It needs to get paid back. Hopefully, businesses that need help and will work can get the help with the Small Business Administration program.

Articles cited

LA Times

articles.latimes.com/2011/feb/18/business/la-fi-sba-loans-20110218

Robert Kennedy murder isn't recollected by Sirhan Sirhan

Sirhan Sirhan was convicted over forty years back of murdering Robert F. Kennedy. Sirhan has no recollection of killing Kennedy whatsoever. Sirhan was apprehended at the scene by bystanders, who wrestled his gun from him after he had fired all of his ammunition. His lawyer claims he was brainwashed into committing the criminal offense.

Attorney implies Sirhan was brainwashed

At a forthcoming parole listening to, the attorney representing found guilty murderer Sirhan Sirhan will argue that Sirhan was the target of brainwashing, which led his client to assassinate Robert F. Kennedy, in accordance with MSNBC. Sirhan was found guilty of the 1968 assassination of Kennedy, younger brother to President John F. Kennedy and Attorney General during the JFK administration. The brainwashing scheme that happened was something that Sirhan's lawyer, William F. Pepper, compared to the movie "The Manchurian Candidate." This was about a man that assassinates a politician after being brainwashed. Pepper maintains the conditioning Sirhan received resulted in Sirhan shooting Kennedy at the Ambassador Hotel in LA in June of 1968.

Not having any recollection that the Kennedy shooting happened

Sirhan said for a long time that he didn't even recall Robert Kennedy getting shot. The Daily Mail reports that while referencing the Six Days War of 1967 which Kennedy supported Israel in, Sirhan said that he did the criminal offense "for my country" "with 20 years of malice aforethought" in his trial. Originally, he got sentenced to death. It did not happen though since the death penalty was opposed by the Kennedy family. After the Supreme Court case Furman vs. Georgia made it so the death penalty was not allowed in the nation from 1972 to 1976, he got sentenced to life in prison.

Not trying to get parole

Sirhan Sirhan has not been very proactive in pursuing parole. He will not send out counsel sometimes while he shows up to hearings hardly ever with a lawyer sent. It has been extremely hard to prove innocence or get him released. Not showing up tends to do that to a person. Sirhan was wrestled to the ground by hotel staff and several Kennedy supporters, including journalist George Plimpton and Olympic athlete Rafer Johnson, while nevertheless firing his revolver.

Information from

MSNBC

msnbc.msn.com/id/41822218/ns/us_news-crime_and_courts

Daily Mail

dailymail.co.uk/news/article-1361455/Robert-Kennedy-assassin-Sirhan-Bishara-claims-I-brainwashed-freedom-bid.html

Libya declines as Gaddafi will not abandon and gas costs spike

The unrest in Libya has caused side effects to ripple worldwide. Worldwide oil prices climbed because of instability and stock markets slid down as a result. Gas production could wind up at a standstill, as turmoil in gas rich nation is worsening. Libyan ruler Muammar Gaddafi has refused to leave office. Many protesters are calling for him to leave after four decades in power.

Major gas producer Libya paralyzed by protests

The deterioration chaos in North African nation Libya has reverberated throughout the financial world as instability in a major gas producing nation led to a slide in stock markets, in accordance with the Los Angeles Times. Tues, February 22, the price of crude oil went up which meant the Dow Jones Industrial average slid over 178 points down. The futures for crude oil went up from Monday to Tues quite a bit. It went from $91.43 a barrel to $94.49. After oil minister of Saudi Arabi, Ali Ibrahim Naimi, made an announcement that any shortfalls in Libya would be made up with the Organization of Petroleum Exporting Countries, the oil prices went to $93.57 a barrel.

No leaving for Gaddafi

Muammar al-Gaddafi, ruler of Libya, has refused to leave his post, according to The Telegraph. During demonstrations in other countries, the rules have been showing lots of empathy for the individuals. Gadaffi just promised more bloodshed with Libyan demonstrations while on Libyan state TV. In the speech, Gadaffi said the death penalty could be what protesters face which he feels is perfectly acceptable for any person trying to end his four decades of being in charge. He also pledged that he wouldn’t leave and would “die a martyr.”.

Protests means Libyan officials abandon

In an expression of solidarity with the demonstrators, several key Libyan authorities and diplomats have left their posts and in some cases defected, according to the Christian Science Monitor. You will find Libyan diplomatic staff at the United Nations, in India, In Australia and in the United States. The have said the bloodshed needs to end. Loyalists and security forces have shot demonstrators, and states are emerging that African mercenaries have been called in by Gaddafi to shoot at crowds. Protestors are getting killed by Libyan military members that are nevertheless loyal to Gaddaffi. They’re using helicopters and jets to do so.

Information from

Los Angeles Times

latimesblogs.latimes.com/money_co/2011/02/stocks-end-sharply-lower-as-oil-hits-two-year-high.html

The Telegraph

telegraph.co.uk/news/worldnews/africaandindianocean/libya/8341683/Libya-Col-Gaddafi-threatens-to-unleash-mob-rule.html

Christian Science Monitor

csmonitor.com/World/terrorism-security/2011/0222/Qaddafi-deserted-by-Libyan-diplomats-amid-brutal-crackdown

NV not looking into Reno's financial missteps

The city of Reno, Nevada, has found itself in a tough situation. The city mishandled short-term loans that were supposed to be repaid in one year. The city's failure to understand the terms, however, means these loans could be stretched out over 10 years.

Reno’s short-term loans

The city of Reno, NV was given over $8 million in short term installment loans from Nevada. The streets department, sewer department and general fund for the city were designed to be supported with the loans. In a year, the money was intended to be repaid to the state. The city didn't know that the money had to be paid back while the year came to an end and the state anticipated its money. City officials are calling this an “incorrect interpretation of current law.”

Financial loans in Reno change

In order to manage the $8 million debt to the state of NV, Reno officials are attempting to get the loans re-written. The one year obligation has now been stretched. The debt will be paid in 10 years instead. The city could be required to pay more interest on the money, and the state will hold the loans over time. In the short term, this is another $8 million worth of money the state will have to cut out of its yearly budget.

No investigation into funding mismanagement

Reno made a mistake when looking incorrectly at the loan rules. There will not be an exploration done though. Nevada Taxation Director Dino DiCianno has said that this mishandling is a “technical violation of state laws.”. City officials won't be investigated by the state, even if it’s a violation legally. The state is going to work with Reno. The 10-year loan will be approved by the state. City budgets are designed to be reviewed by the state. Nevertheless, the loan payment getting missed is something that should have been noticed by both the city and state. The person who made the mistake is unknown. This won't be investigated.

Articles cited

RGJ

rgj.com/article/20110218/NEWS/110218036/1321/Reno-financial-hanky-panky-likely-to-be-handled-without-investigation–taxation-department-says

Justice Department won't back Defense of Marriage Act

The Justice Department has announced it won’t defend the Defense of Marriage Act, or DOMA, in the courtroom. Legislation isn’t repealed, but it just definitely won’t be defended anymore. Same sex marriage at the federal level is governed by Defense of Marriage Act, which states the federal government doesn’t recognize homosexual marriages. The Attorney General and the President had to reach a conclusion about the law due to pending lawsuits regarding it. The conclusion was the law was unconstitutional.

Defense of Marriage Act unconstitutional according to Justice Department and White House

The Attorney General has informed Congress that the Department of Justice will not any longer pursue any lawsuits related to the Defense of Marriage Act, or DOMA, according to the ABC. In 1996, Defense of Marriage Act was passed into law. It states that states and territories of the United States never have to recognize a same-sex marriage even if it was done legally in another state. The objection is not to the act itself, but rather Section 3 of Defense of Marriage Act, which legally defines marriage as a union between a man and a woman as far as the government is concerned. Attorney General Holder, consulting with President Obama, decided that Section 3 of DOMA is unconstitutional.

Searching closer

Because of the lawsuits Pedersen v. OPM and Windsor v. United States, DOMA was something the government had to choose to uphold or not. Due to constitutional grounds, both lawsuits challenge Section 3. The New York Times reports that they are being done in the courtroom districts that did not have previous homosexual marriage cases. Using "rational basis" and "heightened scrutiny," the Justice Department reviewed both cases. A “rational basis” test is to determine whether a constitutionally legal law serves no logical purpose. A “heightened scrutiny” test is to determine whether an unconstitutional law serves a legitimate governmental purpose. The Justice Department and the White House decided that no legitimate governmental purpose for banning homosexual marriage exists and doing this was discriminatory, thus unconstitutional.

Have not beaten out DOMA yet

The DOMA law hasn't been repealed even though the Justice Department refuses to pursue any more lawsuits. The DOMA, including Section 3, remains in effect for the moment. Obama has gone on record as saying that he believes it is “flawed,” but he is constitutionally mandated to uphold legislation, to a certain extent. In order to see if legislation is worth defending in court, the president can make orders. This would be to the Justice Department.

Articles cited

ABC

blogs.abcnews.com/politicalpunch/2011/02/president-obama-instructs-justice-department-to-stop-defending-defense-of-marriage-act-calls-clinton.html

NY Times

nytimes.com/2011/02/24/us/24marriage.html

Justice.gov

justice.gov/opa/pr/2011/February/11-ag-223.html