Tag: CORPORATE BONUSES

  • “Wall St.’s $90 Billion Bonuses: Putting ‘croutons on a cow pie’,” Mickey Glantz. January 18, 2010

    Ever since I was a little kid, I was told that I had to make choices and that I would either be happy or sad depending on the choice I made. You can’t have that model plane AND keep your money to buy it with: you had to choose. At 70 I learned that, had I become a broker on Wall St (or an executive in a major bank or in an insurance corporation for that matter), I actually could have had my cake and eaten it too.

    Charging bull statue on Wall St signifying a 'bull' market
    Charging bull statue on Wall St signifying a ‘bull’ market

    Wall St, banks and insurance companies essentially bankrupted America. We don’t want to say that. It is bad for public morale and for business as well. Using smoke and mirrors and large infusions of cash, the bad choices of all the above were compensated with public money, money from American taxpayers at the same time the US in involved in a two-front war (Iraq and Afghanistan).

    Wall St.'s bull in the eyes of the public
    Wall St.’s bull in the eyes of the public

    These guys, with the help of the US Congresses of Bush and Obama have ravaged the country, been caught, lectured to and sent home … but apparently not empty handed. They have given themselves bonuses ($90,000,000,000*) at a time America has high unemployment rates and high underemployment rates. So, what lessons have they learned? It pays whether you screw up or not. Or perhaps “greed is good”. Or perhaps, “let’s make sure we stay too big for the government to let us fail.” Or “if the public has no bread, let them eat cake.”

    I guess I am most surprised by the lack of public outcry, demonstrations on Wall St. or any other collective action to tell the government, the congress and these ravenous corporation that “We are mad as Hell and are not going to take it any more” from industries and corporations that gouge the public because the public seems to have no collective voice. We, the public, seem to have become immune to the bad news we see or hear in the media each day. This is how we have reacted during the minute-by-minute coverage of the Vietnam War, and now with the wars in Iraq and in Afghanistan. As individuals, we are feeling powerless (or apathetic). For many the Internet highway has replaced the streets for voicing our collective anger but that means expressions of our displeasure and anger have become atomized and that is favorable for those toward whom our anger is directed. internet

    I was in a bookstore but a few minutes ago where I saw the title of a book that brought to the surface my anger and frustration about bailouts and bonuses. Oddly, it was a book on cowboy poetry, something I had never thought about. But the title caught my eye and it should have been the title of these comments: “Croutons on a Cow Pie” (by Baxter Black). croutonsoncowpie

    The cow pie** represents the bailouts, and now Wall St and other Corporations are asking the public for croutons to top off their pig-out at the expense of me (still working) and the millions unable to find work. To the government and to Wall St I guess all is OK. The stock market is doing well, even though no jobs are around.
    ——————
    * $90 Billion is the official amount but what is the real unofficial total amount?
    ** cow pie is defined as a “a dropping of cow dung.”

  • Who to Audit? Mickey Glantz or WorldCom?

    Who to Audit? Mickey Glantz or WorldCom?

    IN LIGHT OF THE CURRENT FINANCIAL CRISIS AND ONGOING CORRUPTION IN FINANCIAL CIRCLES, I THOUGHT IT MIGHT BE INTERESTING TO REVISIT AN EDITORIAL I WROTE SOME YEARS AGO WHEN I WAS GOING TO BE AUDITED AND THE NOW DEFUNCT WORLDCOM WAS NOT. PERHAPS, INSTEAD OF AUDITING MICKEY GLANTZ IN 2002, THEY SHOULD HAVE KEPT THEIR EYES ON BERNIE MADOFF!!!

    About ten years ago, I got a dreaded letter in the mail. It was from the Internal Revenue Service. They wanted to audit a tax return of a few years earlier. Why they picked me I will never know. The auditor said that it was some sort of random check. It was a command performance, that I must be there when they tell me to show up. In fact, my job requires that I travel a lot and apparently the IRS, at least then, allowed only one postponement. If I did not comply with a second date for the audit, I was told I would be delinquent and subject to whatever the IRS was questioning.

    After several sleepless nights, I asked my accountant to re-check my tax return and to come with me to the audit, which was not in Boulder where I live but near Denver. I drove the accountant to the audit. We sat in a waiting area and had the “opportunity” to listen to a taxpayer being raked over the coals by an auditor in one of the Dilbert-like cubicles that serves as their offices. “Mr. Glantz,” I heard the receptionist say, “the auditor will see you now.” Showtime!

    I recall walking into the office and spotting on the wall a certificate of appreciation to the auditor signed by President Reagan. The auditor appeared to be less than 30 years old. On his desk was a copy of a hunting magazine. There I was, on the opposite side of the desk, a tree-hugging liberal and supporter of animal rights. I had a feeling I was in for a bad time. I had brought some articles in which I had been quoted or that I had written for conservative magazines in order to show that I was “used” by the two ends of the political spectrum. He seemed somewhat impressed.

    I presented my itemized lists of deductible items — books, travel, unreimbursed work expenses, and so on. They were hand-written and recorded on yellow legal paper. Then the fun began. “Why did you count item X as a work expense? Where did you stay when you were in such and such a foreign city?” Most of the conversation now is nothing but a blur. I do, however, recall a couple of questions that have stuck with me. In fact, I refer to them at parties if ever the IRS becomes a topic of conversation.

    Running his finger down the hand-written lists, he came across an item marked “book.” He asked, “you have a book listed here on March 3 (three years earlier), what was the name of the book and its author?” I said that if it was on my itemized list it was work-related, probably an environment or climate book. He continued down the column and said “Here is a book for $22.43. What was the book, and who was its author?” I gave the same answer as before.

    After about two hours of this Q&A, he summed up the meeting noting that he had found some discrepancies in favor of the IRS and that he had found even bigger errors in my favor. He suggested we forget them, and just as I was about to agree (just to get out of there), the accountant said we would file for the $167 dollars owed to me.

    Now, get the picture: I was about to get back money from the IRS following an audit. I was told that only a few percent of audits get anything back and that over 80% of those audited have to pay something additional. I had survived my first and only audit … so far.

    Today we have two major scandals related to “cooking the accounts.” Enron did it one way and WorldCom did it another. The former used a clever way to hide their lie, whereas the latter apparently manipulated their numbers so as to look profitable. But the methods of accounting they used were obviously phony and (it has been said) would have been spotted in the first few weeks of Accounting 101 at any college.

    The point I want to make is that the IRS scrutinized me at the $8- and $22-dollar level, while they were unable to detect an obvious misplacement of $3.6 billion.

    There is hope and solution in the offing, however. The new young auditors, like the one that scrutinized every meager amount on my list of deductions a decade ago, should be given the task of reviewing these multi-billion dollar corporations, and the IRS accountants in charge of monitoring and scrutinizing the WorldComs and Tycos and Xeroxes of today should be sent to the minor league to audit the hand-written lists of deductions of everyday, hard-working Americans. Maybe, this way, those hard-working laborers would finally get a break on their taxes.