The gist is this:
Barclays is paying $1.75bn for the US operation of Lehman and is keen to retain its best staff. It said it had made no promises to individual staff members about how much they will receive but that the bonus fund would be paid out. In addition to the $2.5bn cash pool, Barclays is also in negotiations with about 30 executives it considers to be Lehman’s best assets and plans to offer them contracts worth tens of millions of dollars. British employees of Lehman described the bonus payments as a “scandal” as they waited anxiously yesterday to see whether a deal could be struck with buyers circling the bank’s European operations.
So, the amount of money needed to buy US operations of Lehman (1.75 billion) is actually %30 less than the bonus pool set aside by the execs (2.5 billion). Remember, NY bankers are the smartest people in the world and we need to trust them with all our money. And when they get into positions of government, we should trust them implicitly.
The other day I received paperwork for my first 401k. Goldman Sachs real estate funds was an option. The other options didn’t seem any more viable. The only safe bet was money markets, which until the last couple of weeks were not FDIC, and in fact they still aren’t. What are these papers of no value doing in my hands? This paper has no value! A liberal looks at this as a failure of the markets when in actuality it is the government pigeonholing the options of employees into investing into large banks with lobbyists. There were no options to invest in gold, or any FDIC account in my 401k. Why is that?