Wells Fargo Chief Makes $21.3 Million

DOUGLAS MCINTYRE, Daily Finance

Wells Fargo (WFC) CEO John Stumpf made $21.3 million last year, up from a mere $8.8 million in 2008, according to the preliminary proxy the bank filed with the SEC on March 3rd. The four executives under him, including the CFO, the head of wealth management, the chief of wholesale banking, and the head of consumer finance, made an average of $13 million. Stumpf’s cash compensation was over $5 million and he also received nearly $45,000 in perquisites which included use of a company car.

Welcome to the world after TARP repayment, and less than two years after the credit crisis nearly brought the U.S. banking system to it knees.

The Wells Fargo board may argue that its CEO posted strong enough results for the firm’s stock to be up 250% during the last year, but that’s no better the the improvement in Citigroup’s (C) shares, and well below the run-up in the shares of Bank of America (BAC). Advocates of Stumpf’s pay package might argue that he deserves his compensation simply because Wells Fargo is still around and several other large banks and investment banks are not.

The Administration and Congress are still considering significant restrictions on bank activity in the future, including the Volcker rule, which would sharply restrict proprietary trading. There is no guarantee that if bank executives had taken more modest pay politicians would not be as aggressive in “punishing” financial firms with greater oversight, but paying a bank CEO $21 million certainly does not help.

Read more here: http://www.dailyfinance.com/story/company-news/wells-fargo-chief-makes-21-3-million/19382717/

More Easy Money for Wall Street

The sale pitch for financial-reform legislation pending in the House claims it would put an stop to “too big to fail” bailouts for the leading banks. The reality is the opposite. The federal government would instead be granted unlimited authority to spend whatever it takes to prop up the big boys when they get in trouble. Only in the next crisis, Congress won’t have to be asked for the money. The financial rescues will be funded by the secretive Federal Reserve, not the Treasury, with money the Fed itself creates.

And the emergency lending could be pumped into any financial institution in trouble–not just behemoth commercial banks but investment houses like Goldman Sachs, insurance companies, hedge funds or any other pools of private capital whose failure regulators believe would threaten the system.

Read more about bank bailouts…

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Recipient Of Obama’s Generosity: Country Club

Several weeks ago, the Emergency Economic Stabilization Act of 2008 created an IRS tax credit of #2,500 – $7,500 for those who purchase qualifying electric cars through Dec. 31, 2009.

Until recently, electric cars that qualified for this credit were not eligible for use on Ocean Reef Club’s golf courses. However, thanks to a recent approval from the Ocean Reef Club Golf Committee, a specific tax-credit eligible electric car, manufactured by Club Car, has been approved for use on the Dolphin and Hammock Courses. Read about the bailout of the wealthy country club…

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Elizabeth Warren Says Banks are Gambling with Bailout Money

As Chair of the Congressional Oversight Panel, Elizabeth Warren oversees the use of TARP money. She’s outraged. During a recent MSNBC appearance, she said the banks were behaving like gamblers with public money. She showed that only the wealthy were being helped, not average Americans. Watch the video of her appearance…

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