Wednesday, May 20, 2009

Banks pay bonuses with workers life insurance

This has to be one of the stories that tells you exactly what these bankers are about. Let's get paid our bonuses, when our ex employees die!

From the WSJ:

Banks are using a little-known tactic to help pay bonuses, deferred pay and pensions they owe executives: They're holding life-insurance policies on hundreds of thousands of their workers, with themselves as the beneficiaries.

Banks took out much of this life insurance during the mortgage bubble, when executives' pay -- and the IOUs for their deferred compensation -- surged, and banking regulators affirmed the use of life insurance as a way to finance executive pay and benefits.

You want job security? Be accident prone, or an extreme sport participant that cliff dives on the weekend and goes to Iraq for a vacation and these bankers will keep you around!

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