Yesterday I posted about the 700,000,000,000 mortgage industry bailout plan announced by the Bush Administration late last week. While that number is mind boggling, CNBC does the math and if you add everything including Fannie and Freddie, AIG, etc., the actual number could reach close to $1.8 trillion.
So while you contemplate $1.8 trillion for a moment, watch for more stories like this:
Fury at $2.5bn Lehman bonus
STAFF at Lehman’s New York office who helped to cause the world’s biggest corporate bankruptcy are to share in a $2.5 billion bonanza.
The bonus, which has been described by London staff as a “scandal” has been pledged by Barclays Capital, the British-based bank that last week acquired Lehman’s American operation and took on 10,000 staff.
And if golden parachutes like above don’t raise your blood pressure, something else being discussed just might.
It appears that one of the plans floating around Washington includes bailing out foreign banks and if that isn’t bad enough on its own, one of those foreign banks could be UBS which is the current rumor. What is so special about UBS you ask?
I am sure most will remember John McCain financial adviser and possible Treasury Secretary in a McCain cabinet, Phil Gramm. UBS just so happens to be the bank that he is the US Vice Chair of and a lobbyist for.
Chew on that for awhile but be careful not to whine…
UPDATE: Another McCain link to the mortgage meltdown. It seems his campaign manager Rick Davis lobbyed on behalf of Fannie Mae and Freddie Mac for 5 years helping them beat back more strict regulatory challenges.