For the worth of $500 million!
How much did all the financial institutions made after peddling $500 mil of toxic notes to the consumers? (Heard that High Notes are practically worthless. Let me guess). At 5% commission, this will work out to be $25 mil. At 3% it will be $15 mil. Good money huh? For a profit of $15 - $25 mil, this was deemed good enough a business proposition to go out there and sell. And the loss from the consumers was a staggering $475 to $485 million. I would presume they know what they were selling, and thought that the risk was not high enough to become a reality. What if they truly understood the risk and decided, well, it was somebody else’s money to lose while they have to earn their bonuses? It is very patronizing to assume that these super talents being paid super talent salaries to match did not know what they were doing. Could it be a case of penny wise pound foolish, or penny for me, pound for you to lose? I got this scary feeling that in the financial system we have this same selfish attitude in many organizations that as long as they made their penny, others can lose their pants or go and die. Not their problems. They can sell any products or designed any flawed system is ok. Caveat emptor. How many organizations out there are making miniscule commissions while their customers are losing millions and billions, and they happily patting each other on the back for a job well done? Anyone got any sense of guilt, got a little conscience, that they have betrayed the people who faithfully believed in their leadership and in what they were doing? Or is the commission, translated into fat bonuses, really worth it?